MANAGED REPAIR CRISIS

YOU’RE PAYING MORE FOR LESS INSURANCE THAN EVER BEFORE 

Managed Repair Programs (MRP), ​​where an insurance company controls the repair process rather than paying the policyholder for their losses, are becoming more common. 

Insurance companies will either own the repair company themselves or enter into contracts with contractors and restoration companies to control the repair process. 

Neither scenario is good for policyholders and neither should be allowed.   

managed repair program CONFLICT OF INTEREST

“Use my contractor, or else.” Insurance companies are not general contractors and should not be forcing anyone to use any particular contractor “or else” make due with a pre-set, capped, claim payment. 

Quality of Work Concerns

Variable Contractor Quality: The quality of contractors within an MRP can vary significantly. While some may provide excellent service, others may not meet the necessary standards, leading to poor artistry and unsatisfactory results.

Limited Choice: Policyholders may be restricted to using contractors within the insurer’s network, limiting their ability to choose a contractor they trust or who specializes in the type of repair needed.

Reduced Scope of Repairs & limitations

Minimal Repair Approach: Insurers may instruct MRP contractors to perform only the most basic or minimal repairs necessary to restore the property rather than addressing all issues comprehensively. This can lead to unresolved problems and future expenses for the policyholder.

Denial of Certain Repairs: In some cases, insurers may deny repairs for damages they consider pre-existing or unrelated to the covered event, leaving policyholders responsible for additional costs.

Coverage Disputes: MRPs can sometimes lead to coverage disputes, especially if the insurer and the policyholder disagree on the extent of necessary repairs or the cause of the damage.

Limitations: Policyholders may face limitations on legal recourse if issues arise with the work performed by MRP contractors, as contracts and agreements may favor the insurer’s terms.

WHY IS THIS HAPPENING? 

​Citizens blames higher rates on non-storm related claims such as water losses – one of the most common causes of loss across the country.   “More water damage is caused by events such as a pipe bursting, or plumbing or appliance issues, than from the weather.” 

While abuse does exist, there are common sense solutions that have been rejected by Citizens and other insurers in Florida. 

Rather than attempting to control the abuse legislatively, they are holding all their policyholders accountable even if you’ve never had a claim.

While common sense fixes that have been agreed to by all stakeholders continue to be ignored, insurers like Citizens, Florida Peninsula, Kin and others are taking advantage of the opportunity to carve out more exclusions to coverage for homeowners in Florida. 

You’re paying more for less insurance than ever before.  If this seems wrong – it’s because it is.

WHAT CAN I DO about my managed repair program?​

While Managed Repair Programs offered by insurers can provide lower policy costs, they can also present significant challenges and concerns for policyholders.

Issues such as conflict of interest, variable quality of work, reduced scope of repairs, and lack of autonomy can make Managed Repair Programs (MRP) problematic.

Policyholders should carefully consider these factors and consult with an experienced Public Adjuster if they encounter issues with a Managed Repair Program or prefer an independent contractor for their repairs.

Claims Aid Consultants Public Adjusters will perform a free inspection of damages and expert policy review to evaluate all of your options.