MANAGED REPAIR PROGRAMS

Managed Repair Programs
Roof Repairs in Springdale, AR

Who is Your Contractor Really Working for?
Details to consider: Managed Repair Programs

The National Insurance Restoration Council (NIRC), “a nonprofit organization devoted to protecting and educating property owners & restoration contractors when dealing with insurance companies”, is pushing hard to limit the growth of Managed Repair Programs. Basically, MRPs restrict consumer choice and put the burden of quality on the homeowner instead of holding insurance companies fully accountable for roof damage and repair. They place an unlicensed middleman between customers and insurance companies - an unlicensed middleman who works to keep insurance payouts to a minimum. Other names for MRPs are ‘third-party-managed concierges’ and ‘direct repair programs.’
In many cases, MRPs are owned or controlled by the insurance companies themselves. They exist to limit insurance claim payouts by having people who aren’t licensed insurance adjusters do the inspections. Since these individuals are not usually properly trained to locate and assess potential damage, they often submit insufficient claims, a practice that boosts the profits of insurance companies.
Most MRPs force customers to use a contractor of the insurer’s choosing rather than one chosen by the customer himself. These contractors are frequently referred to as ‘affiliated’ or ‘in-house’ contractors. Instead of paying the insured homeowners the amount owed to fix the roof, MRPs require homeowners to accept work done by the insurance company’s own contractor. 
On top of all this, insurance companies advertise MRPs as being beneficial to the customer using flowery language such as ‘platinum preferred’ or ‘a better way.’ Often, insurance companies argue that their way is better for customers by claiming that the use of ‘affiliated’ contractors means that repairs get completed sooner.
Some MRPs also claim to offer lengthier guarantees on materials and workmanship than those required by state laws. And insurance companies often argue that MRPs reduce the cost of repairs and increase customer convenience, among other benefits.
In reality, however, it appears that these programs tend to benefit the stockholder profits of the insurance companies at the expense of the customer - especially during natural disasters. Contractors hired by the homeowner him or herself work for the homeowner, but ‘affiliated’ contractors work for the insurance companies, so they are not under any obligation to perform work according to the customer’s standards. This leaves the customer with a corporate call-center to turn to when leaks or damages occur.
MRPs appear to violate some state laws designed to limit the Unauthorized Practice of Public Adjusting (UPPA) when insurance companies act as both contractor and adjuster. In many cases, ‘in-house’ roofing companies that offer MRPs have been accused of performing shoddy work using lower-quality materials, all to save money for the insurance companies that own them. This leaves homeowners with poorly repaired roofs and depressed real estate values.

To learn more about the benefits of having your roof repaired by a contractor of your choosing, instead of one selected by your insurance company, contact Pinnacle Roofing. We’ll be your roofing advocate throughout the entire insurance claims process. 

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