hey welcome back to our Channel I’m your
host Dmitry Lipinskiy in today’s video I’m going to be explaining why insurance
deductible is a big deal I know it’s not very popular topic if you’re the
homeowner please watch this video to understand maybe you have a contractor
you’re working with who is asking you to cover deductible maybe you the homeowner
who wants that contractor to cover deductible save some money I want to
explain to you what happens when homeowners pay deductible what happens
when they don’t pay deductible why for so many contractors out there it’s white
and black and they’re like nope there’s no other way there’s the only way we do
it in some states is illegal some states didn’t pass legislation yet
but I want to explain what it does to the industry why it’s a big deal because
it’s not small thing it’s really big it’s a game changer it affects everybody
and I want to explain in detail what it is the difference between not paying
deductible and pain deductible is not your one simple line I call it a really
big thick line huge difference what happens to you if you’re the business
owner please wash it maybe it’ll help you make a decision in your business to
stop covering deductibles as well I do recognize the problem I do understand
both sides we actually have roofing business of our own a lot of our
competition do cover deductibles we have this conversation with the homeowners
all the time and we have never covered deductible in six years last year we
collected about one hundred and seventy thousand dollars in deductibles here’s
why I understand deductible and I want you to understand this is the line
between one and two and kind of few factors that contributes according to
CNBC in 2018 only 39% of population in the United States could afford $1,000 so
I don’t blame homeowners who have a hail damage storm damage hurricane damage who
don’t have money I mean when you’re at other part of this when you’re sixty one
percent of people who cannot write $1,000 check I mean it’s sad I feel bad
for you but doing it the wrong way it doesn’t make it right I mean I can
justify it on the moral level I can sympathize you not having money
but it still doesn’t make it right but it definitely contributes to this big
big problem so what’s insurance deductible is when insurance company
gives you estimate how much a premium is gonna be they’re gonna ask you a
question how much can you pay in case of a claim and the more you pay the less
the premiums are the less you pay the higher the premium so some people have
money no problem they put $10,000 deductible they know they can cover it
no problem some people have twenty five hundred dollars every shy would say
about $1,000 if you live somewhere in Florida its percentage of your home so
it can be I’ve seen deductibles five six ten thousand dollars I mean pretty big
ones right insurance calculates all of that so they know the area if the risk
they have how many hail events how many storm events
how many hurricane events they know it and they calculate their risk and they
know in case of event they know their payout so their estimate and they use
software that most roofers most construction company is the call
Xactimate so they know when they’re going to calculate part of that estimate
will be deductible so here’s what’s happening insurance company is knowing I
mean they’re the biggest fraudster in the industry and I’m sorry to break it
down like that I can prove it and I can say it again and again and yet insurance
companies commit more fraud than anybody else
in the construction industry they do it daily they do it systematically an
average increase of insurance initial claims it’s about thirty forty percent
that’s what homeowners don’t know that’s what people rarely talk about and
YouTube on Facebook because nobody wants to fight billion-dollar companies but
this is regular numbers so like for example we live in Minneapolis and we
just have couple hail events and what’s happening when you have a hail events
churns company sends adjusters those adjusters are trained to save their
insurance company money so if you watch movies from 60s and 70s and 80s about
underdogs lawyers going and soon insurance companies you know in a
medical field and a whole bunch of different fields insurance never
voluntarily agrees right away oh something happened you hurt yourself
boom we’re gonna pay you know premium dollars to for you to get well to
restore your body and if it’s health insurance
to restore your car to restore your house they usually try to save money and
they give you estimate they pretty much lowball you right and the problem with
the insurance industry in construction field is a little bit different than
with the cars in cars and special medical medical happens the same thing
they usually settle for less so hospitals usually settle I’ve heard
about 7080 percent of the hospital what wants to get paid they never get full
amount I know a lot of friends could do supplements for hospitals when you talk
about cars and fixing cars it takes place too but in home industry
you have a lot of guys who is willing to do that so it works like this so let’s
say you have $10,000 job and I’ll give you actually example I have a my
father-in-law just got hit with a hail damaged recently so insurance company
comes out if he writes $10,000 estimates it’s supposed to be
$13,000 and here’s how it works in the real life I actually met adjuster the
guy was from Texas great guy again trained to save insurance company money
so we’re in Minneapolis he knows that he knows the codes he knows that every
house gets ice and water barrier you know all the accessories right so he
writes estimate in that case it’s actual was 9 K and ended up being 13 K later
and I asked him during the estimate I’m like dude why are you doing this why
it’s only $9,000 why ice and water is missing he’s like oh I just missed it
just add it we’ll pay it later and I’m like are you for real like that one item
ice and water barrier it’s $1,000 he literally I mean he’s trained it’s his
full-time job to look at a roof to write down you know 10 page estimate so
nothing is missed and he’s missing it the question for you and let me know in
comment below is it a fraud when insurance adjustor
knowingly forgets or misses items or he’s committing fraud and it’s if you’re
talking about army of those adjuster who’s doing that every single day think
about those army of adjusters comes to the area and if all of them is one item
it’s 2,000 bucks and they open thousand claims this how insurance company has
muons the biggest problem though is this look at this another number
90% of construction businesses fail under two years let me explain how it
works that adjuster that wrote nine thousand or ten thousand dollar clean
he knows really well there is a lot of people in the market who actually will
do the job for that money I’ll tell you even more not only they will do the job
for that but they also get a job even less than that they actually will eat
deductible why is this happening well those guys usually are here and this is
just numbers I always say guys numbers don’t lie people who eat deductible and
people who don’t charge enough for the work who worked for bare minimum wages
because they’re desperate they don’t know how to market themselves maybe it’s
his side job maybe he works for another company for one there is no way they can
be successful in the long term and this is our the best part of the video here’s
what’s happening here’s how eating deductible affects
everyone and affects this fail rate this is the the worst number of all this is
the most concerning number so insurance company already you know shorten us and
then homeowners saying we cannot pay so now what’s happening roofers working for
bare minimums and they fail so what happens with all of those scenarios so
let me guide you so if you do pay deductible you know you’re doing it
right you’re gonna get a good warranty because like I said my company we
collected over one hundred seventy thousand one year think about 170
thousand it’s like it’s a lot of profit right what can business owner do with a
hundred and seventy thousand dollars he can buy insurance he can take care of
employees he can do good things for the business to help him survive not to be
in the 90 percent failure rate right so we’ve been in business for six years
we’re gonna be here for another 10 years not planning to go nowhere have no Plan
B’s we’re all here working hard if you call us you know five years later you
know something went around we’re gonna come back you know you’re doing it right
you do good warranty because you’re investing in the good company who actual
planning to stay in business it’s a good practice it’s just freaking the right
thing to do it helps both industry sexual helps insurance in the
straight and it helps construction industry why is it helping everybody
because insurance industry’s their premium is going to be right people not
gonna pay more in insurance what’s happening is everything balances in life
when everybody is not paying deductibles insurance sooner or later we’ll start
charging more somebody sooner or later will pick up the tab and you guys know
it happens in every area of our lives so helps both industries you know you’re
following your ethics like when you do something right you’re actually gonna
sleep really well that night if you do it you are beind alone like state of
Minnesota it’s illegal contractor can get I think it’s like four thousand
dollar fine we’re actually supposed to have it in our agreements and
contractors can get very creative how to kind of go in and give it away but I
call white black what it is white and black this is white this is black
there’s no gray line I mean I don’t care if you say well I’ll put the yard sign
and this advertising fee and you don’t have to pay thousand dollars yeah I’ve
heard it all they think about is if you’re the business owner I’m telling
you this you’re not going to be losing jobs as a matter of fact you can win
quite a few I guess when people call us and they ask us do waive deductibles do
pay my deductible say no sir we don’t as a matter of fact even did radio
advertising that we don’t do it storm group roofings owner Demetria Lipinski
doesn’t believe in door knocking to get your business no they will handle your
claim the right way with no illegal deductible waving like some companies
offer if you put their sign in your yard and people call us and say to make sure
every single person who knock on my door it was last year storm
they said they offered to pay deductible the only reason I called you because
I’ve heard the radio ad and you didn’t do it and this is why I called you guys
business owners I’m telling you like there’s two sides to every story you
obeying the law and it’s for all parties you guys are covered if if you ever get
audited if insurance company ever will start investigating the fraud you
homeowner gets in trouble contractor gets in trouble I mean it’s just not
good for you so let me draw a picture of you what happens when you don’t pay
deductible if you’re the business owner please pay close attention I have very
different philosophy very different explanation how it affects your business
and if the homeowner how it affects you so a
lot of people are saying that when you cover deductible when the roofer pretty
much eats deductible they’re gonna cut corners they’re gonna install cheaper
materials labor is not gonna be as good simply not always the case you actually
can get a really good job really do the roof and I’ve seen a lot of good roofs
when roofers I’ve been really good roofers they follow the procedure in the
fire follow manufacturer’s specifications so you still can get a
good roof the problem is not there the bigger problem is it’s a very poor
business decision the biggest problem is here this is your deductible problem
this is your deductible problem ask yourself if that business is forgiven me
one thousand dollars and he’s doing it every day like because we usually do one
roof a day and he does it for every single job so this week he just ate
$5,000 next week $5,000 what’s happening guys’s businesses who don’t charge
enough and I see it all the time I teach roofing class because of that they don’t
have money to cover their verse or second word come audit they don’t have
anything fame urgency for business emergency when something bad happens
they never cover it why you just waved thousand bucks on each job each day
you’ve been working this week what do you think is gonna happen yes you might
be good roofer but you’re making real poor business decision and you’re bad
business owner it’s also questionable integrity I see it all the time you know
nice people hard-working guys but they’re like we don’t really need it and
I get it because there’s two types of contractors and homeowners ask yourself
a question who is the guy in front of you so you have a solid company who has
an office his employees actually invest back in the company has insurances
covers employees you know pays taxes all of it and you have what’s called paper
contractors somebody who works out of his garage science constructs with you
give the order or work order to his Saab I mean I understand how that guy might
not need thousand bucks but are you still supposed to pay it but if you do
pay it do you are you really covered that’s the question deductibles over its
business and you have to ask yourself like for me if when I charge the doctor
well doesn’t go to my pocket it’s not extra bonus it’s not my you
vacation it’s a business money and it belongs to business – just like overhead
and profit and Xactimate and we’ll talk about that in the next video
so it’s very questionable integrity like if you’re the business offering how do
you go around it’s like oh let’s just not do it we can do it for less and
we’ll give you a bigger invoice maybe by the way it’s a fraud right so it’s a
higher risk for all parties business is at risk to lose everything they’re not
charging enough homeowner is at risk to get 20 year warranty with the company
who’s gonna be in the business you know two years and then if insurance
investigates that fraud or your state does it or if you have a paid job you
didn’t pay the deductible you didn’t do what’s right and now you have a major
complaint with a roofer good luck to you I’m telling you screwed right so it’s
pretty much open fraud so you guys gonna have warranty issues and pretty much no
one’s covered business risk in it homeowners risking it the question for
you why risk it right like I said guys the line is not fine line it’s very
thick line it affects everybody it affects the industry we should be
talking about it a lot of states already took extra step of doing it
contractors if you’re just being creative and you’re trying to find a way
how to waive it but not really waiving it like in the form of kickbacks I mean
think about your business like for example I have guys coming to us in
storm proofing it’s pretty big business I mean we’re not huge we’re like good
midsize company and we have a lot of offers work under the table and sales
guys from out of state comes in often and offers us to sell under our name and
we always turn it down in the past you know we work with some out-of-state
sales guys so we’re actually hiring if you’re good integrity roofer you can
work for us no problem but one of the main reasons I turn down a lot of guys
they call it easy mining they’re like why wouldn’t you you know what’s
thousand dollars you getting thirty thousand dollar claim guys I’ve been in
this business for six years now and I’ve seen so many big like you’re talking
about 25 to 40 million dollar Ponzi schemes if you take away their sales
that’s coming in today they’re gonna collapse sales I say it all the time
don’t fix everything when you start cutting corners and by
the way they’re cutting corners that don’t happen on the roofs cutting
corners happens in business when business you know not charging for stuff
they’re doing not collecting money and due to them I mean we’re already under
huge pressure with the insurance company this is already huge battle for us
insurance companies trying to kill us crashes they denying the claims you know
we’re waiting for monies for 3-4 months this is another big contributions to our
failure but on top of that deductible that homeowner supposed to pay so if
you’re the homeowner watches that maybe I understand that you don’t have money
if you’re that 61% that cannot come up with a thousand bucks
I mean financing come up with something you’re getting literally full job
sometimes thirty forty thousand dollars for price of small deductible I mean
enjoy it maybe finance and maybe sell something do it right you’re gonna enjoy
house the value gonna go up higher good trusted company that you trust read the
reviews and make sure the local and they’re gonna be there for years to come
I guarantee you you’ll be happier person you will sleep better this is my message
to you this is how I look at deductibles it’s something that we need to talk a
lot about let me know what you guys think in comments below if you don’t
agree with me totally fine you’re not gonna offend me if you have arguments
towards covering deductible or not paying deductible I want to hear from
you let me know what your argument is and let’s start the conversation
I read all my comments and I promise you I’ll get back to you right away because
I want to talk about it we need it it affects us all not just you the
homeowner you the contractor let’s be done with it thank you guys for watching
this video if you like this type of content there is more of it gonna coming
up in the near future don’t forget to subscribe to channel hit that ring so
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