Cal Spoon 05/17/2017
One may wonder, what in the world is he talking about? Others, who are familiar with the machinations of the insurance industry, and government in general, will probably sigh, or gasp, depending on which party they are representative of.
The first thing anyone reading must understand, everything you can see, feel, and touch, save the ocean and the dirt on the ground, are insured.
Second thing, almost all intellectual property, money, stocks and all the things you cannot see, are also insured… think Liability, you are insuring against the off chance you make a mistake, in advance…
Third thing, and this is the kicker, if the above two statements are true, then #Insurers have a finger in EVERY SINGLE piece of pie, from insurance bills that are clearly from them and for them, HB 1774 and SB 10, to bills that in appearance, have nothing to do with them, HB 3293.
Okay, this is not rocket science. It is math, and knowing how to look past what you are being told, to what you are actually being shown. In today’s data rich environment, both are crucial.
Texas enjoys the 10th Largest insurance market… on the PLANET!
Insurance Restoration makes up a huge portion of the Texas Building Market. Roofing would probably be the largest part of that market.
HB 3293 would have installed a safety mechanism and Mitsubishi heating products that would only have helped Texas residents, by licensing the folks that work on their largest investments, their homes and businesses. Licensing, to me, means accountability. Texas cities, municipalities, and building departments would be nearly self funded through licensing and permitting fees of legitimate contractors who have performed all the necessary requirements to work for the citizens of Texas. Why in the world would this bill get killed, really before it ever got started?
The only entities that stand to be harmed are the no good roofers/contractors who do not perform under the rules… and #Insurers.
This is what one time Allstate CEO had to say about YOUR #FloatMoney.
“Jerry Choate, Allstate’s chief executive officer from 1995 to ’98, said at a news conference in New York in 1997 that the company’s new claims-handling process had reduced payments and increased profit, according to a report in a March 1997 edition of National Underwriter magazine. Insurers can’t make significantly more money just from cutting sales costs, he told reporters. “The leverage is really on the claims side,” Choate said. “If you don’t win there, I don’t care what you do on the front end. You’re not going to win.”
The more cash insurers can keep from premiums, the more they can invest. This pool of assets–most of which the companies invest in government and corporate bonds–is known as float.
So, we have a clear understanding, they are using our premiums that are owing to us and fellow insureds, to buy into our government…
Roofers, Builders, and Skilled Tradesmen, this is your wake up call, coupled with a call to action. If you want to know why you never get paid correctly when doing insurance restoration, pay very close attention, then contact Governor Abbott and tell him, stop the nonsense, put Texans first, that means insureds and contractors alike, and revive HB 3293, and kill those no good companion bills HB 1774 and SB 10.
There used to be a Texas license, called TRCC. I held two at the same time. Patrick Cordero was the head of that department, and at one time, a client, who continued on to be a friend.
Here is from the TRCC government website.
House Bill 2295 contained the Sunset Commission’s recommendations on the Texas Residential Construction Commission, as well as additional statutory modiﬁcations made by the Legislature. The Legislature did not pass House Bill 2295 and the Commission was not continued in separate legislation. The Texas Residential Construction Commission was abolished and the Act expired on September 1, 2009. All records and property transferred to the Texas Comptroller of Public Accounts.
Now, we agree, Texas has no legislation regarding building/roofer licenses, even though all other trades are licensed. HVAC, plumbing, electrical, and several others, even in unincorporated counties, these rules still exist, for that license holder.
Now, understand that none of these are considered a builder. A builder would be the one that directed each and every one of these trades, tie them all together, and make the project happen. In fact, without the builders to put all the other together, nothing would get built, and there would be no responsible party to point to. Now you have to ask yourself, why in the world would we require all these trades to have licenses, yet not the person who is responsible for all them? (Lon Smith Roofing, for example. His roofers did not lose, his sales staff did not lose, his suppliers did not lose… he did, or the corporation.)
Now, let us take Florida, who has some of the heaviest, and best regulation for building in the known world. Every single person working has to be licensed or attached to a license holder, have valid workers comp on site, with ALL on site listed on that sheet, if not… last I checked, up to $24,000.00 fine, per person not on list. Permits must be pulled by the license holder, and multiple inspections done to insure that each step was done properly, and signed off. (If I remember correctly, Jupiter had 5 inspections on a single roof.) Their departments rake in a ton of money. Licensure, permits, inspections, all charged for. Texas has this same ability to not only make things safe, but also fill the coffers of their departments, instead of using tax dollars.
Following prices were pulled straight from Xactimate, on May 2017 price list.
The cost of a square of 30 year shingles in Dallas, Texas today is $244.20before/if they pay 15% respectively for Overhead and Profit it totals $326.14
The cost of a square of 30 year shingles in West Palm Beach, Florida today is $314.05 after they pay 15% respectively for Overhead and Profit it totals $417.92
My wording is not a mistake. Texas, and most states play games with O&P. There are numerous sets of criteria that changes depending on the circumstance. I say they change because the insurer makes up or uses whatever excuse they wish to deny it, and save a minimum 10% Overhead and 10% profit (Should be 30%, which is what any bank would require before they loaned you money.)
Florida on the other hand, by regulation, advertently or inadvertently, forces this to kick in… licensure.
So to recap. Florida pays $69.85 more per square than Texas, pre O&P, and $91.08 after.
There is a very clear picture here for anyone who wants to look. In Texas, carriers stand to lose roughly a $100.00 per square of every single square of shingles they pay for in Texas. Now take those O&P numbers and throw them on every single estimate the carrier writes, on every single item on that estimate. All municipalities are harmed by the lack of this, as well as all the residents, and our children, and their children.
I am a PA, yes, but I am also a Husband, a Father, a Grandfather and taxpayer. I am a Texan, and very proud of it. I am also human, and sick and tired of my government being sold to the lowest bidder, and yes, I mean lowest. This is the exact same reason I began InsuranceBusters.net. I was fed up as contractor, as a homeowner, and as a relative and friend to so many who had been harmed. I figured out how to fix it, and have been doing so with a vengeance for nine years now.
This is as brief as I could be, and still get a point across.
The benefits of HB 1774 and SB 10 are to limit exposure to insurers, and it is approved and on the Governor’s desk. This is a protective measure for insurers only. There is no benefit to the insured, quite the opposite.
HB 3293 was meant to limit harm done to Texans by installing a simple licensing and registration system to ensure quality folks do quality work for our residents at home, and it never made it out of committee. (It would also make the worthless “improper installation” denial a lot harder to stick, after it was permitted, inspected, and approved.)
Stop the madness and abuse of our rights, click his name above or here, Governor Greg Abbott, (Goes straight to Texas Governor Website Contact Page.) and tell him exactly what is on your mind.