Should you add roofing insurance claims support?

Hey there! It’s Nitin Khanna from N3 Business Advisors, and today, I want to talk about a question I get asked often by roofing contractors: “Should I add roofing insurance claims support to my business?”

The short answer? Yes, but it’s not as simple as just deciding to offer this service. You need to understand the ins and outs of roofing insurance claims, weigh the potential benefits, and assess whether it fits with your business model. In my experience, adding insurance claims support can be a huge revenue booster and a value-added service that attracts more customers—but it comes with its own set of challenges.

Before we dive deeper, I highly recommend checking out a previous article we published on N3 Business Advisors titled “Understanding Contractor Liability in Roofing Contracts.” It covers essential insights on protecting yourself legally in the roofing business, and it’ll give you a solid foundation to better understand how adding insurance claims support fits into the bigger picture.

Now, let’s talk about why offering insurance claims support for roofing could be a game changer for your business.

Why Roofing Insurance Claims Support Could Be a Smart Move

For many homeowners, filing an insurance claim can be overwhelming. After all, navigating through policies, understanding coverage limits, and dealing with adjusters can be tricky. This is where you come in.

Adding roofing insurance claims support can provide homeowners with a seamless process and make you an invaluable resource. As a roofing contractor, you’re already dealing with clients who need repairs or replacements—why not step in and help them with the insurance process too?

Here’s why you should seriously consider adding roofing insurance claims support to your business:

• Attract More Clients: Many homeowners find themselves frustrated and confused when dealing with insurance claims. Offering this service can position you as an expert who can guide them through the process. You’ll stand out from competitors who don’t provide this additional service.
• Increase Revenue: When you help a client secure an insurance payout, they’re more likely to choose you for the job, giving you access to larger projects. Plus, the commissions and handling fees you could earn from working with insurance companies can add up over time.
• Build Stronger Relationships with Clients: By assisting with their insurance claims, you’re offering a value that goes beyond just the roofing work. You’re acting as a trusted partner who genuinely wants to help them. This builds loyalty and encourages repeat business and referrals.
• Expand Your Network: Insurance adjusters and claims specialists are often involved in the process, and having relationships with them can open new doors. Not to mention, your reputation in the insurance industry could lead to more referrals.

How Does Roofing Insurance Claims Support Work?

Before you dive into offering roofing insurance claims support, it’s important to understand how the process works. You’ll essentially be helping clients file and manage their claims by:

1. Documenting Damage: This is the first step. You’ll assess the damage to the roof, take photos, and prepare an estimate for the repairs or replacement.
2. Filing the Claim: You can help the client submit their claim to their insurance company. You’ll need to provide them with all the necessary documentation, including photos, the estimate, and any other information that backs up the damage.
3. Working with Adjusters: Insurance adjusters are responsible for evaluating the damage and determining the payout. You’ll work with them to ensure they understand the full extent of the damage and the repairs needed.
4. Negotiating the Settlement: Sometimes, insurance companies may offer less than what’s needed to complete the job. As an experienced roofing contractor, you can help your client negotiate for a fairer settlement.
5. Managing the Project: Once the claim is approved, you’ll complete the roofing work, ensuring everything is done to the highest standards and in compliance with the insurance policy terms.

Action Step: Start by gaining a solid understanding of how the claims process works in your area and with different insurance companies. This will help you manage client expectations and build trust.

The Pros and Cons of Offering Insurance Claims Support

Like any service, offering roofing insurance claims support comes with both benefits and challenges. Let’s break it down:

Pros

• Increased Revenue: By handling both the roofing and insurance aspects of a job, you can potentially earn more revenue. You might also have a better chance of securing larger projects.
• Customer Loyalty: Helping clients through the insurance process can strengthen your relationship with them. Clients will remember how you guided them through a stressful time, making them more likely to refer you to others.
• Competitive Advantage: Offering insurance claims support can give you a unique selling point (USP). Many homeowners might prefer working with one contractor who can handle everything from the claim to the repairs.
• Better Cash Flow: With insurance companies often paying upfront or in stages, you may receive payments faster than with standard roofing contracts. This can improve your business’s cash flow, especially during slower periods.

Cons

• Additional Administrative Work: Handling insurance claims can be time-consuming. You’ll need to coordinate with insurance companies, adjusters, and clients, which requires both time and attention to detail. It’s an added administrative burden that might pull you away from actual roofing work.
• Legal and Liability Risks: As I mentioned in our article “Understanding Contractor Liability in Roofing Contracts,” taking on the responsibility of managing insurance claims comes with potential legal and liability risks. You need to ensure that you’re well-versed in insurance laws and regulations to avoid any complications.
• Negotiation Hurdles: Insurance companies may offer lower-than-expected payouts, and sometimes clients won’t be satisfied with the settlement. You may need to step into a more complicated negotiation role, which can sometimes be tricky.
• Training Required: If you’re not already familiar with the insurance claims process, you’ll need to invest time and possibly money in training. You’ll need to know the specifics of how claims work, the insurance terminology, and how to work effectively with adjusters and clients.

How to Get Started with Roofing Insurance Claims Support

If you decide to offer roofing insurance claims support, you’ll need to take a few initial steps to get started:

1. Educate Yourself on Insurance Claims

The first step is to get educated about the insurance claims process. Look into the laws and regulations governing roofing claims in your state or province. Understand the terms used by insurance companies and learn how to communicate with adjusters.

• Action Step: Attend workshops, webinars, or take courses on handling roofing insurance claims. There are many organizations and associations that offer resources to contractors.

2. Train Your Team

Once you’re familiar with the process, it’s time to train your team. Everyone involved in the claims process should understand their role, from the initial assessment to submitting claims and managing negotiations.

• Action Step: Hold training sessions for your crew and administrative staff so everyone is on the same page when it comes to handling insurance claims.

3. Build Relationships with Insurance Adjusters

Start building relationships with insurance adjusters in your area. Having a good rapport with them can help when it comes to negotiating settlements or getting claims approved faster.

• Action Step: Introduce yourself to local adjusters and get to know how they work. Establishing a professional relationship can make the process smoother for everyone involved.

4. Streamline the Process

Create a system to streamline the insurance claims process. This could involve setting up a specific workflow for documenting damage, submitting claims, following up with insurance companies, and managing client expectations.

• Action Step: Develop a checklist or workflow to guide your team through each step of the process, ensuring that nothing falls through the cracks.

Final Thoughts: Is It Worth Adding Roofing Insurance Claims Support?

Ultimately, whether or not you should add roofing insurance claims support to your business depends on your capacity to handle the additional work, your willingness to learn, and your desire to provide more value to your clients. If done correctly, it can certainly lead to higher revenue, stronger customer loyalty, and a competitive edge in the marketplace.

At N3 Business Advisors, we’ve seen firsthand how the right services can transform a business. If you’re considering adding roofing insurance claims support, it’s worth weighing the benefits and challenges carefully.

Adding this service can position you as a go-to expert in roofing, not just for the physical work but for the entire process, from the first inspection to the final payout. If you are looking to sell roofing business in Canada, then schedule a call with us today!

Disclaimer:

Any information provided here is for informational purposes only. It should not be considered as legal, accounting, or tax advice. Prior to making any decisions, it’s the responsibility of the reader to consult their accountant and lawyer. N3 Business Advisors and its representatives disclaim any responsibilities for actions taken by the reader without appropriate professional consultation.