Can adjuster deduct profit and overhead?

by dm777 » Thu Oct 08, 2009 05:37 pm
Posts: 2
Joined: 08 Oct 2009

I've had a fire loss and the claims adjuster says that if I do the work myself instead of his low-bid contractor, he is going to deduct the 10k "overhead" and "profit" line items from the contractor's written bid, since I don't have the overhead, and I'm allowed not to profit from the claim. So he says unless I sign a contract with this contractor for him to do the work, the settlement check to me/mortgage company will be minus the 10k contractor P&O. I'm familiar with the concept of not profiting from an insurance claim but does this sound right?

Total Comments: 1

Posted: Fri Oct 09, 2009 04:11 am Post Subject:

Some companies will do this and some will allow for overhead for the insured's hassle. It really depends on the state you are in. I would contact the department of insurance in your state to see their stance. I believe that in Texas that both have to provided to the insured. In either case I would contact the DOI and let them know that this adjuster is directing you to their contractor.

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