I’ve written on this topic earlier than however clearly increasingly more builders and others are leaping on the band wagon. The same old technique is to supply a ‘free’ inspection of the property and in the event that they discover injury following a storm, hail occasion, fireplace, or flood, they’ll lodge the declare for the Insured.
Earlier than doing something they’ve the shopper signal a contract that states that the service might be ‘free’ so long as they, the builder, or if they aren’t a builder, their nominated builder, does the work. The sting is within the clause that states that if the builder isn’t appointed the Insured is to pay $xxxx or wherever between 10% -20% of the insurance coverage firm settlement whichever is the larger.
The overwhelming majority of Insurers have a panel of authorised builders as they do for motor repairers the place the Insurer has confidence within the high quality of the repairs and the reasonableness of the pricing.
Insurance coverage claims groups and loss adjusters should not fools. They know that this price is being constructed into the restore price if they permit the agency to do the work with no assure of high quality of workmanship.
As such it isn’t shocking that many instances the Insurer doesn’t approve the builder put ahead by the corporate submitting the declare on behalf of the Insured, and so the Insured then will get hit with price.
Many of those instances find yourself earlier than the Australian Monetary Complaints Authority (AFCA) who’ve repeatedly warned customers to avoid these ‘Storm Chasers’.
If an insured believes they’ve a declare, then all they want do is report the injury to their insurance coverage firm. In the event that they really feel they need assistance with the preparation of the declare, significantly business losses, then they will contemplate appointing a good appropriately licensed claims preparation firm.
With the vast majority of properties now insured direct, Insured’s don’t take pleasure in having a normal insurance coverage dealer, somebody who’s skilled and certified to offer normal insurance coverage recommendation, to help them.
I might ask readers to please share this warning with their household and buddies in order that different innocents don’t get caught having to pay for one thing that’s merely not essential.