..and handle the objections, and handle the objections, and handle the objections.

Transcription

1 ROOF SALES MASTERY Handling Objections with Adjusters I ve said it before and I ll say it again (and again, and again): there is no magic bullet to supplementing. Sometimes new members of the course dive in all excited, skip straight to the Master List of Supplemental Items, copy and paste the approach, send off their first round of supplements, and assume that checks will be flooding in without any objection whatsoever. Then when that doesn't happen, they're stumped, frustrated, and me saying, The adjuster said no to almost everything! This is a typical scenario where someone applies the Supplement lessons, but has not yet thoroughly gone through all the Adjuster Negotiation lessons to learn how to "climb the rungs of the ladder (see lesson Supplementing Reality). Here are the facts: Yes, it is important that you ask for the right items, and yes, it is beneficial to follow the script approach. But that's just part 1 & 2. Supplementing effectively is 3 steps: 1) Ask for the right items. 2) Use the right approach. 3) Handle the objections...and handle the objections, and handle the objections, and handle the objections.

2 It's like driving a car. There are several things you need to do if you want to get anywhere. 1) Get in the car. 2) Turn the key and start the car. 3) Press the gas. If you get in the car and turn it on, those are 2 important steps, but if you don't press the gas, you still aren't going to go anywhere! But you can t blame the car. You'll find a series of suggestions in the program where I talk about avenues to go down once you've hit some objections. Review the lessons under the Adjuster Negotiations section "Playing the Insurance Commissioner Card," "Negotiations & Handling Objections," and "Using Documentation to Validate Requests." You'll find some great steps to approach claims when (not if) you run into objections from adjusters. Let s use a specific example say you get the following objections on the following items: OSHA supervision hours o This is a cost of doing business o We have already paid additional steep & high charges which include these items Step- flashing o We do not pay for items that have not suffered direct physical loss Generator o We have never paid this item before, it is a cost of doing business Ice & water shield o We checked with the city, and while it may be code, they do not enforce this material in their town General labor hours o Labor is included in the price per square for tear- off and cleanup Overhead & profit o O&P isn t warranted on this claim regardless of the number of trades because the project is not complex in nature Here are some ways you might handle these objections: OSHA supervision hours o This is a cost of doing business o We have already paid additional steep & high charges which include these items I see that you have included steep & high charges for this roof, however those line items are clearly defined as an additional labor charge. Xactimate explicitly

3 states in the definition of the high charges as additional labor cost for loss of productivity due to increased risk, and defines the steep charge as additional labor cost for shingle and felt removal on a steep roof. These labor charge additions and do not cover the hourly role of the project supervisor per OSHA guidelines, whose role is solely to monitor the project from the ground and conversely not participate in any labor. This is not a cost of doing business (unlike workman s comp, gas to and from projects, etc.), as it is not an expense required on every single project. Xactware supports this by clearly defining the project manager supervision hours as being warranted on an as needed basis. The project supervisor is federally mandated for this particular claim that is both steep and high (see OSHA 29 CFR h1). Contractors risk crippling citations and bodily harm without the fulfilling the federally mandated regulation OSHA has in place for projects that fall into this category. Therefore it is a non- negotiable requirement for this particular project. Step- flashing o We do not pay for items that have not suffered direct physical loss I understand that it may be your policy not to cover accessories up front that have not suffered direct physical loss from the peril of hail or wind, however this material is not reusable as it has countless nail holes throughout from its initial installation (see photos). To properly repair the roofing system and mitigate any potential future damages from compromised materials such as the flashing, these materials must be replaced wholly. Generator o We have never paid this item before, it is a cost of doing business I understand you might not normally include a generator with the average project like this, and normally we don t either. However, with this particular project, we are without access to any external power. Where normally our crews are able to use an external power outlet on the exterior of the home, this home does not have external power outlets. Aside from requesting the homeowner stay home from work to be present and allow our crew to gain access to the inside of the home, gather several extension cords, plug them into an outlet inside the home, stretch it all the way through the homeowner s living room to put it out the window, all the while letting heat, humidity, dust, and debris come in through the open window that would then require additional clean up (sweeping, etc.), our only reasonable option is to provide a generator for this job. Ice & water shield o We checked with the city, and while it may be code, they do not enforce this material in their town

4 The city states on their government website that they adopt the 2011 IRC which mandates the application of ice and water shield in this geographical area. The city may claim not to enforce it, but unfortunately the shingle manufacturer clearly states that their lifetime warranty is void if installation is not followed per their guidelines, including the application of ice and water shield. See attached manufacturer statement and warranty guidelines. For this reason, we ask that you follow the code requirement and manufacturer guidelines as intended and ensure that the homeowner s concern of not receiving the lifetime warranty they expect and deserve with the replacement of their roof be satisfied. General labor hours o Labor is included in the price per square for tear- off and cleanup On a typical project, additional general labor hours would not be necessary and we would not request them. However on this particular project, the homeowner has very elaborate, expensive landscaping including rare flowers, bushes, trees, fountains, yard art, etc. surrounding the dwelling (see photos). This requires that during the demolition, our crews take extra precaution not to drop debris onto the landscaping, involving not only additional tarping and protection, but also carrying tear- off debris over to different, lower- risk sections of the roof to drop as to avoid the areas with the largest amount of landscaping. After the project is completed, our crews will spend several additional hours carefully picking debris and nails out from the flower beds, shrubbery, tree branches, and dusting off outdoor furniture and decorations, labor hours that would not normally be necessary on a typical project. Overhead & profit o O&P isn t warranted on this claim regardless of the number of trades because the project is not complex in nature Regardless of the number of trades or loosely defined complexity, the homeowner is aware that overhead and profit is included in their coverage for any project in which the hiring of a general contractor would be reasonably necessary. They chose and hired our company, ABC General Contracting, as their general contractor of choice and signed our contract that includes overhead and profit as a part of the total job cost. As a general contractor (see W- 2), each and every trade our company offers is subcontracted by a trade- specific crew. We are not a roofing company, a siding company, or a landscaping company. Rather our company coordinates, locates, hires, schedules, and manages various projects from gutters, roofs, landscaping, cement work, painting, and siding, all of which are performed by subcontractors (see subcontractor agreements attached), removing the time and effort required to coordinate such a project from the customers we service. Our mutual customer is clear on what overhead and profit is, and has included

5 a letter requesting they be indemnified wholly for the replacement cost of repairs per their contract (their words - see attached). Rules of thumb for handling adjusters objections: Generally speaking, when you hit objections from adjusters, re- approaching those items might go like this (as demonstrated above): Go back and re- hash the items and reiterate more in detail why you need those items. "Mr. Adjuster, here is exactly why these items are necessary for the proper indemnification of the homeowner and the proper repairs for the claim...we need X because Y (see photo/documentation of code/osha literature attached), we need A for B because C (see photo/documentation/osha/code/etc.). This job simply cannot be completed correctly without these items. These items are not considered a cost of doing business as you suggested, because they are not items that are necessary for every single job - they are items necessary for this particular job. A cost of doing business would include gas to and from the job site, hourly wages of the roofers, workman's comp - these are items that are incorporated into our 'cost of doing business,' unlike items A, B, C, D, etc." Adjuster negotiation tactics might include the following various approaches, or a combination of several: Revisit the same items but explain in more detail with more documentation (photos, code language, OSHA regulations from the website, etc.) and really paint the picture of why these items are necessary Send screenshots of detailed line item window in Xactimate for each items to prove or disprove what the adjuster is claiming is included in that line item Ask for the supervisor and try to get to someone who can say yes Use the teamwork approach to explore possible compromises or line item substitutions that the adjuster is more comfortable or willing to add instead Have your homeowner request a re- inspection with a new adjuster Play the insurance commissioner card Use a letter from the homeowner Request in writing exactly why and on what grounds or per what definition a specific line item is being denied coverage (or have your homeowner do this) Request and use a letter from the manufacturer of the material that supports your reasoning (whether this is for something discontinued, color issue where you are unable to achieve reasonably uniform appearance in the line of sight, a warranty issue where if the project isn t done a certain way, the warranty is void, etc.) Use an ITEL (for things like siding or discontinued shingles)

6 You may have to hash out a specific objection on a specific item or items several times before you get to a yes. This might mean finding a suitable compromise (teamwork approach), playing the insurance commissioner card, involving the homeowner with a letter, asking for a supervisor, or getting a re- inspection. There is no one right method for approaching it all, as every single claim, adjuster, project, and insurance company is different. You might talk to Sue from State Farm on Monday who gives you overhead and profit, and you might talk to Ted from State Farm on Tuesday with a nearly identical project and he denies O&P. Sometimes it seems like there s no rhyme or reason. While frustrating to deal with, remember that supplementing is not a win or lose game. You re always winning if overall, across the board, you come out with more revenue than you began with. You will continue pursuing your supplemental items by handling objections until you either a) get what you want, or b) reach a suitable compromise where you feel comfortable enough with the settlement to move on. That might mean enduring some flat out denials or only fractions of the supplements you request sometimes. But here s an empirical reality check: Let s say you send in 10 supplements this week for $5,000 each, and this is what happens: 1. Denied - $0 2. Denied - $0 3. Partial approval: $1, Partial approval - $3, Denied - $0 6. Partial approval - $2, Partial approval - $1, Partial approval - $3, Full approval - $5, Partial approval $1,500 On the surface during those transactions, you might feel really bummed and stonewalled. But look at the reality even with three FULL denials, only getting a fraction of what you requested on six of them, and just one full approval, you still accumulated an additional $19,000 for that week averaging almost $2,000 in additions per claim, even with the denials. If you do 100 jobs and maintain even just that +$2,000 average, you ll be adding $200,000 in revenue with supplements for the year. That s a win no matter what way you slice it. Dedicate some time to really going through the Adjuster Negotiations lessons and videos. There you will find a lot of verbiage and examples of how to push through objections, and you will see several examples of how to flexibly navigate the web of objections with each unique claim you encounter. The point is to learn how to adapt to each claim and discussion and respond appropriately to get what you

7 want, and that means learning how to achieve your desired end result in different ways each time since no two claims are alike. Last, be sure to post your specific questions in the private Facebook group versus ing me if you wouldn't mind! With HUNDREDS of members currently, if everyone is ing me with quick questions, it gets out of control pretty quickly and it can take me a several days to get to it, haha! When you post a question in the group, not only will you still get my feedback, but you get several suggestions, answers, tips, and tactics from other contractors who can say, I ran into the exact same thing here s what I did / here s what worked for me / try this, and everyone benefits from the discussion! If you do find you need or want some 1- on- 1 coaching, you can enroll for a month or so if needed.