Risky business: Add insurance work to add revenue

By IKO Industries. 

With the right resources and knowledge of the insurance world, adding insurance claim work to your business can help you grow, and your customers will thank you. 

Taking on insurance jobs can be a daunting task for some roofing companies. While it can be frustrating dealing with insurance companies and even more frustrated homeowners, insurance jobs can be an incredibly beneficial way to grow your business. Beyond the profitability, it is a very rewarding experience when you can help someone after a disaster. Hear from industry experts to prove that insurance claim work is good for business and for customers when everyone has the right support to be successful. 

Why insurance work is important 

It’s no surprise that a willingness to bid on storm repair work will offer an inroad into additional jobs. But, to what extent? According to Aaron Singer of Your Virtual Adjuster, the U.S. alone experiences about $25 billion in storm-related roof damage per year. Insurance claim work can open a third revenue stream on top of new construction and repair/replacement work — and a big one at that. 

In fact, Rick Eastman, IKO territory sales representative for Minnesota, will tell you that insurance work is the single, most lucrative part of the roofing business for his market, given the high payout on shingles and the in-turn huge profit margins available to roofers who take on the jobs. 

But for contractors like ROOFPRO Craftsman Premier Dan Boehnen of Advantage Construction, it’s not just about the money, it’s about serving the needs of the customer. “We do this to help the little guy come out on top. We take pride in helping homeowners navigate insurance companies and resolve their claims fairly.” 

Much like David and Goliath, homeowners often do not have the tools required to understand and navigate their insurance claims. Trusted contractors play the role of consultants (or the great problem solvers, according to Eastman) who provide an extra set of eyes to ensure their customers’ insurance processes and payouts are consistent, fair and accurate. 

Overcoming the barriers 

So, then, why do most roofing companies shy away from insurance work? Boehnen believes it’s a matter of risk and commitment. “Yes, it’s a profitable business to be in, but it’s also an expensive business to be in. Companies that work with insurance companies require resources, time, tools and knowledge that they wouldn’t have otherwise. You have to be motivated and willing to make an investment in going down this path.” 

Insurance companies are known for rigid claims requirements. From a formal estimate to aerial measurements to copies of state and local building code requirements, not every roofing company has the established processes needed to fulfill these requests. Additionally, according to Singer, there are risks associated with putting the time and effort into the upfront administrative work and then ultimately not getting the job. 

Tools that can help 

Luckily, there are options for roofers that do not have the resources or desire to learn the insurance world. A partner like Your Virtual Adjuster (YVA) allows contractors to offload the entire process instead of having to hire and train staff in-house. And as the insurance industry gets more and more complex, outsourcing this function allows contractors to focus on what they do best — selling and installing roofs — rather than becoming experts in forms and processes. 

With YVA, roofers can use a mobile app to upload basic information that adjusters then use to produce a fully comprehensive claims package and negotiate a settlement. Additionally, YVA clients have access to a private video library to help them better understand the fundamentals of insurance claims, should they want to. 

And of course, ROOFPRO members are able to get all these services at a discount. 

Getting started 

What parting advice do our experts have for roofing companies who are considering adding insurance work into their business model? Be agile. Know that the only constant is change, and in order to work in the insurance industry, you will be constantly learning. Also be patient with people and processes, and don’t take things personally. 

Original article source: IKO