Tag Archives: Overhead and Profit

Restoration Contractor Revenue and Profit Is Important If Policyholders Are Going To Get Quality Work

Steve Patrick is a guru for those estimating property insurance losses. He made a suggestion on Level The Playing Field, for a construction book, Markup & Profit: A Contractor’s Guide, Revisited. His suggestion caught my eye since Merlin Law Group keeps this work in our reference library. This book is an excellent reference which contractors, property loss … Continue Reading

Colorado Not Replacing Contractor Overhead and Profit Bulletin

The Colorado Department of Insurance will not be repealing its longstanding bulletin requiring that contractor overhead and profit be a part of a calculation to determine actual cash value at tomorrow’s stakeholder meeting in Denver. This is fantastic news for all Policyholders and the correct decision by those dealing with this issue in the Colorado … Continue Reading

How To Adjust Actual Cash Value and Overhead and Profit in Colorado—Colorado To Hold Public Forum For Comments

The Colorado Division of Insurance will hold a public stakeholder meeting at the Colorado Division of Insurance in Denver on May 21, 2019, regarding its proposal to eliminate one of its long-standing bulletins requiring insurance companies to pay contractor overhead and profit rather than deduct the amount until incurred.1 We discussed this in Colorado Overhead … Continue Reading

Colorado Overhead and Profit Issues—Merlin Law Group Files a Response for Colorado Policyholders

The Colorado Department of Insurance has proposed eliminating one of its long-standing bulletins requiring insurance companies to pay contractor overhead and profit rather than deduct the amount until incurred. Such an elimination is obviously against policyholder interests and is the result of insurance industry lobbyists making inroads with Colorado insurance regulators who are supposed to … Continue Reading

Farmers Insurance Recognizes 25% Contractor Overhead and Profit!

Overhead and Profit can generate a lot of debate when insurance company adjusters are looking to meet their adjustment severity goals and lower claims payments. But have you ever wondered how those same insurers instruct their sales people to calculate overhead and profit when they are calculating the premiums that they charge their customers for … Continue Reading

Overhead and Profit Should be Included with Payments Made on Actual Cash Value Basis

While many carriers continue their attempt to exclude overhead and profit from property damage claim payments made on an actual cash value basis, the majority approach across the United States has been to include general contractor overhead and profit in actual cash value payments for losses where repairs would be reasonably likely to require a … Continue Reading

The Scope of Appraisal in Illinois

The appraisal clause in a typical residential and commercial property insurance policy provides for an appraisal if the parties disagree as to “the amount of loss.”1 That phrase has been the subject of extensive legal debate between insureds and insurers in terms of its meaning and scope. While most courts have concluded that ascertaining the … Continue Reading

Is a Dispute Over General Contractor Overhead and Profit Appropriate for Appraisal?

In Windridge of Naperville Condominium Association v. Philadelphia Indemnity Insurance Company,1 a federal district court in Illinois recently addressed the issue whether appraisal is appropriate to resolve a dispute over the need for a general contractor to perform repairs following a covered loss. There, hail damaged townhome buildings, requiring repairs. Philadelphia paid for losses it … Continue Reading

Overhead and Profit Workshop For Restoration Contractors in Dallas on October 1

Insurance restoration contractors and public adjusters often complain that many insurance companies will instruct their field adjusters to do just about anything to exclude paying general contractor overhead and profit. Jacob Krahl, managing director of Elite Consulting Pro, has had so many contractors he consults with complain about this unique issue he is sponsoring an … Continue Reading

Farmers Sells a Policy that Is Far Worse then Its Competitors – Review of the Farmers “Next Generation” Homeowner’s Policy, Part 3: Overhead and Profit

The title of this blog is a quote by Chip Merlin after we discussed some of the issues that have been popping up in my continued review of the Farmers “Next Gen” policy. During this review, I realized this policy is really the gift that keeps on giving—that is, if you are the carrier. Hidden … Continue Reading

Payment of Overhead and Profit

One common problem that has been arising is when overhead and profit should be paid in response to a property insurance claim. For those not aware, overhead and profit (generally estimated at 20% of the total amount of the estimate) is intended to cover the overhead/operating costs of a general contractor as well as the … Continue Reading

Kelly Kubiak, Esq. Explains Overhead and Profit

Kelly Kubiak, an attorney at Merlin Law Group, talks about Overhead and Profit in this video. Overhead and Profit is when you have an insurance claim with an insurance company and they pay you for building damages. One of the things the insurance company must take into consideration is whether or not it is reasonably likely … Continue Reading

Overhead and Profit versus Supervision

Monday’s Superstorm Sandy Seminar for Public Insurance Adjusters had some very interesting discussions involving the fine details of adjustment. One of those had to do with the costs of supervision and whether those should be part of general contractor overhead and profit.… Continue Reading

When Is a Policyholder Entitled to Overhead and Profit?

The prevailing view is that overhead and profit is due if a policyholder can show the services of a general contractor is “reasonably likely.” In Mee v. Safeco Insurance Company,1 James Mee purchased homeowners coverage from Safeco. Mee suffered a loss to his home when a toilet overflowed. Safeco prepared an estimate for repairs but … Continue Reading

Louisiana Citizens Property Insurance Loses Overhead & Profit Case

Louisiana Citizens Property Insurance Company has settled a state class action case, Press v. Louisiana Citizens Fair Plan Property Insurance Corp., for failing to fully pay overhead and profit to insureds. The proposed settlement, for $23 million, covers claims from Hurricanes Katrina and Rita.… Continue Reading

The Overhead Fight — Understanding Business Interruption Claims, Part 8

(Note: This Guest Blog is by Michelle Claverol, an attorney with Merlin Law Group in the Coral Gables, Florida, office. This is the part of a series she is writing on business interruption claims). Accountants usually define “overhead” as operation costs that are incidental to the production process. Generally, there are three categories of “overhead:” (1) those … Continue Reading

Overhead and Profit Ike Cases in Class Action Status and Gaining Media Attention

Houston Chronicle reporter, Purva Patel, filed an article, "They Want ‘Profits’ of Ike," noting that Hurricane Ike policyholders who have wrongfully been denied payments for expected costs of general contractor overhead and profit are bringing their actions in class action lawsuits. Our law firm has filed some of these cases with Javier Delgado taking the … Continue Reading