Restoration contracting is more expensive than cash contracting. Period. But why would it cost more to replace a roof through your insurance than if a homeowner was paying cash?
Why Insurance Work Is More Expensive
When you’re building a cash roof, you’ll spend time with potential clients to review, discuss, and agree on the project to be built. The owner will typically pay 1/3, 1/3, 1/3 as the job progresses and you can leave the driveway for the last time with the money for the work you’ve performed in hand. Easy. Fair.
When you’re working in restoration, take the amount of time invested on a cash project and multiply it by five or more. A majority of your time will be spent prior to seeing a single dollar for your efforts and usually without a guarantee that you’ll get the job.
Add to that the complexity and difficulty of dealing with minimally trained insurance adjusters, the insurance company strategy of delay and defend (delaydenydefend.com), and when that’s done now the mortgage company bureaucracy and delay. These frustrating processes can take months and countless hours of work to successfully navigate.
A large portion of the funds for the job won’t be released to the homeowner until completion of the job, and unfortunately now you’ll need to again collect that money from the homeowner who doesn’t always appreciate the legitimate reasons for the higher cost over a cash bidder.
Large storms increase the demand by a multiple for labor and material. Simple economics. The roof that cost $x 10 years ago now cost $3x or more. Homeowners don’t understand simple supply and demand and now that they have that money in their account they think that you should perform the job for what they feel is a fair cash price, although as we’ve discussed this is nothing like a cash roof.
All this is made more difficult because the owners are usually living in the home where you’re working…and of course they don’t understand what’s taking so long!
We help homeowners recover their insurance funds so that roofers can build roof projects that are already funded.
We’re getting several roof projects funded by insurance companies every single day throughout the state of Florida.