As a Certified Contractor with Malarkey Roofing Products we are able to provide an upgraded extended warranty to our customers. The Emerald Pro Warranty, along with the Secure Choice residential roofing system, provides exceptional guarantees and peace of mind. Harvey Roofing & Construction loves Malarkey Roofing because they share our values of delivering the highest quality and striving for excellence in everything we do.
Harvey Roofing & Construction
5712 Regalview Dr
Joshua, TX 76058
I recently had an interesting conversation with our business insurance agent. Some of the things he told me were an eye opener from my own standpoint as a homeowner, not just as a roofing contractor.
It started with doing a regular review of the coverage that Harvey Roofing & Construction has within our own contractor insurance policy. We highly value the protection it provides our clients and our business, so we are very in depth with maintaining and understanding the policy. It is also a large expense so each year we review the policy renewal in depth.
That lead to discussing the "competition" and what our agent often sees among other construction contractors, specifically roofing contractors...
These are the 4 key points that shocked me:
1. - He sees roofing contractors put a general liability policy into place, make the down payment and then never make the first required monthly payment. So obviously the insurance policy cancels. The contractor receives a certificate upfront showing the policy coverage being for a one year term, so they provide copies of the certificate for the next year when the insurance is actually cancelled. His agency is aware of this regularly happening because homeowners that are provided certificates sometimes call to verify the insurance and they must tell them that it has been cancelled, when the homeowner was just given the certificate as proof.
2. - Many home restoration contractors buy the wrong type of policy. Roofing contractors specifically will often buy a policy that is intended to insure a roofing crew or crews. Think of it as a policy that is limited to being an actual roof installer, when in reality most roofing contractors are more of a general contractor that is utilizing subcontract labor for their roof installation projects. This leads to major gaps in coverage and could in essence mean the policy provides no real coverage at all.
3. - Dealing with roof replacement projects involves tearing off old roofs as part of the project. While the roof is torn off it is considered an open roof. Even if you still have the roof decking covering the home it's considered an open roof until the new roof installation is complete. Coverage for this portion of the job is absent from many liability policies issued to roofing contractors. If a huge unexpected storm rolls in while your roof is torn off and rain leaks into your home there will be no insurance coverage backing the water damage that may occur. I was told their agency always offers the added open roof endorsement for coverage, but that it is often declined because the contractor doesn't want to pay the extra premium.
4. - Contract labor isn't covered on a standard general liability policy. The expectation would have to be that the installers or subcontractor have their own general liability insurance. The fact is very few roof installation crews have their own insurance. I have actually never come across one that did. This creates the need for the roofing or general contractor's general liability to also include an endorsement to provide coverage for contract labor performed by subcontractors or others. Those considered to be a subcontractor could be the actual roof installation crew, the rain gutter installer, etc.
It made me realize how imperative it is to verify a contractor's insurance. Just being given a certificate of insurance isn't really any protection. You have to ensure that the policy is in good standing. This requires calling the insurance agent and requesting them to confirm that the coverage is in fact in force.
We offer our customers the ability to receive an insurance certificate with them listed as the certificate holder and additional insured. This provides not only the policy and contact information needed to verify for yourself, but it also guarantees you will be notified if the policy is ever at risk of lapsing. The additional insured designation gives the added benefit of actually being a named insured on the policy for the duration of your contracted project.
Found this so interesting that I had to share!
- Harvey Braden III
Harvey Roofing & Construction
Any other thoughts or had an experience with this type of situation?
Leave a comment!
Effective September 1st, 2019 a new Texas law took effect that means big changes for homeowners insurance claims and the storm restoration industry. There has been a law in Texas for several decades that made it illegal not to pay your deductible in conjunction with a repair after receiving proceeds from an insurance claim.
The old Texas law, that governed insurance deductible payments, was relatively vague and the Texas courts ended up questioning its validity back in the late 1980's. In Texas this most often involved shingle roof related insurance claims that were storm damaged by hail or high winds. That lead to many contractors offering to absorb, or waive, the deductible so the homeowner would have no out pocket expense in completing repairs in conjunction with an insurance claim. The deductible eating arrangement was an illegal practice all along. Contractors would primarily provide a false invoice or documentation representing that the total repair cost included the homeowner paying the full deductible. Those actions have always technically constituted insurance fraud.
The new law created by TX HB2102 was passed by the Texas Congress and signed into law by Governor Greg Abbott to replace the old law effective 9/1/19. In no uncertain terms the new law makes it a state crime to engage with a contractor to have them waive, absorb, rebate, or any other method of assisting a homeowner in not paying the deductible in conjunction with an insurance claim.
This news report video from an Amarillo, TX TV station does a pretty good job of explaining the details. The Texas Department of Insurance is tasked with educating the public about the new law and enforcing it. Hopefully there will be extensive education coming from the TDI as well in the near future.
Also, here is a link to the Texas Department of Insurance where they posted a notice regarding the new state law:
Harvey Roofing & Construction is a proud associate member of the Greater Fort Worth Builders Association. Membership in the association supports an organization that has benefited a positive environment for builders, trade contractors, and businesses associated with the real estate industry in the area since 1947.
The GFWBA is one of 28 local Texas associations that make up the Texas Association of Builders headquartered in Austin, TX. The association is also affiliated with the National Association of Home Builders headquartered in Washington, DC. Through the local, state and national levels there is ongoing interaction with all levels of government to support and protect various legislation to the betterment of the building industry.
Mission Statement & Guiding Principles of the Greater Fort Worth Builders Association
"Our primary purposes are to provide information exchange, communication and education for members; to interact with local, state and federal legislative bodies to foster a positive building climate; to provide a forum to implement policies that affect the building industry; and to promote professionalism among our members."
A board of directors and volunteer committees lead the Greater Fort Worth Builders Association in its mission.
Harvey Roofing & Construction
5712 Regalview Dr
Joshua, TX 76058
Steps to Assess and Recover after the Storm
- Educate Yourself
- Choose an Experienced and Reputable Contractor
- Assess the Damage or Determine if You Have Any
- Settle the Claim with Your Insurance Company
- Get Back to Good as New with Less Stress
Read More Click Here
Harvey Roofing & Construction
5712 Regalview Dr.
Joshua, TX 76058
Trade shows are an important part of the construction industry. Luckily we have a great one in our own back yard each year in Dallas. The 2019 Sunbelt Trade Show was held at the Gaylord Texan Convention Center in August. The show is produced by the Texas Association of Builders along with some very generous sponsors.
This year Harvey was lucky to get to meet Rob Van Winkle "aka Vanilla Ice" of the Vanilla Ice Project TV show (see picture). Rob is a prominent home builder and remodel expert in the Florida coastal market. He is also well known for the blockbuster song Ice Ice Baby (among many others)!
Seeing all the latest innovation in products and services allows us to ensure we are providing the very best options to our customers for their projects. We also get to catch up with many of our vendor reps and other industry associates in one place. It all makes for a powerhouse networking day. It's simply a great event and we are glad we get to attend each year.
Harvey Roofing & Construction
Harvey Roofing & Construction is proud to be a affiliate member of the Greater Fort Worth Association of Realtors, which includes the Texas Association of Realtors and the National Association of Realtors.
We strongly support these organizations in their endeavor to promote and protect private property ownership and rights, as well as working to keep home ownership affordable.
We are excited to announce Harvey Roofing & Construction is now an approved contractor in the GOOGLE GUARANTEED Local Services Program!
Through an extensive background check, verification of insurance coverage and ongoing re-verification, the program provides a guarantee to customers.
How it works: When you book an eligible Local Services provider through the Google Local Services program, you’re protected by the Google Guarantee. If you’re not satisfied with the quality of service, Google covers claims up to the cost of the initial service, with a lifetime cap for coverage of $2,000.
Harvey Roofing & Construction is proud to announce our accreditation with the Better Business Bureau. This represents our ongoing commitment to building trust, advertising honestly, telling the truth, being transparent, honoring promises, being responsive, safeguarding privacy, and embody integrity.
The following is for general informational purposes only. In no way is it intended to be construed as legal advice. We recommend you consult a lawyer if you want legal advice.
Some will view it that the Texas property insurance lobby machine had a huge win following the recent 86th legislative session in Texas. Texas Governor Greg Abbott signed HB 2102 into law on June 14th, 2019 and the law takes effect September 1st, 2019.
What this means to homeowners affected by a loss that is covered by your insurance policy:
- A contractor cannot represent that you paid your deductible when you in fact did not, or assist the property owner in any way to avoid paying the required insurance deductible associated with a property insurance loss claim. Doing so is now a criminal offense as a Class B misdemeanor.
- Insurance companies can require proof of deductible payment before paying out the depreciation, or holdback, dollar amount of your claim once the repair work is completed.
The new law reads in part:
Sec. 707.002. PAYMENT OF DEDUCTIBLE REQUIRED. A person insured under a property insurance policy shall pay any deductible applicable to a first-party claim made under the policy.
Business & Commerce Code.
Sec. 707.004. REASONABLE PROOF OF PAYMENT. An insurer that issues a property insurance policy with replacement cost coverage may refuse to pay a claim for withheld recoverable depreciation or a replacement cost holdback under the policy until the insurer receives reasonable proof of payment by the policyholder of any deductible applicable to the claim. Reasonable proof of payment includes a canceled check, money order receipt, credit card statement, or copy of an executed installment plan contract or other financing arrangement that requires full payment of the deductible over time.
SECTION 2. Section 27.02, Business & Commerce Code, is amended to read as follows:
Sec. 27.02. GOODS OR SERVICES PAID FOR BY INSURANCE PROCEEDS: PAYMENT OF DEDUCTIBLE REQUIRED.
(a) In this section, "property insurance policy" has the meaning assigned by Section 707.001, Insurance Code.
(b) A contract to provide a good or service that is reasonably expected to be paid wholly or partly from the proceeds of a claim under a property insurance policy and that has a contract price of $1,000 or more must contain the following notice in at least 12-point boldfaced type: "Texas law requires a person insured under a property insurance policy to pay any deductible applicable to a claim made under the policy. It is a violation of Texas law for a seller of goods or services who reasonably expects to be paid wholly or partly from the proceeds of a property insurance claim to knowingly allow the insured person to fail to pay, or assist the insured person's failure to pay, the applicable insurance deductible."
(c) A person who sells goods or services commits an offense if the person:
(1) advertises or promises to provide a good or service to an insured under a property insurance policy in a transaction in which:
(A) the good or service will be paid for by the insured from the proceeds of a property insurance claim; and
(B) the person selling the good or service will, without the insurer's consent:
(i) pay, waive, absorb, or otherwise decline to charge or collect the amount of the insured's deductible;
(ii) provide a rebate or credit in connection with the sale of the good or service that will offset all or part of the amount paid by the insured as a deductible; or
(iii) in any other manner assist the insured in avoiding monetary payment of the required insurance deductible; or
(2) provides a good or service to an insured under a property insurance policy knowing that the insured will pay for the good or service with the proceeds of a claim under the policy and, without the insurer's consent:
(A) pays, waives, absorbs, or otherwise declines to charge or collect the amount of the insured's deductible;
(B) provides a rebate or credit in connection with the sale of the good or service that offsets all or part of the amount paid by the insured as a deductible; or
(C) in any other manner assists the insured in avoiding monetary payment of the required insurance deductible.
(D) An offense under this section is a Class B misdemeanor.
The Sponsors of TX HB 2102 that Created New Law
Senator Judith Zaffirini [D]
According to www.followthemoney.org, the Senator as of the date of this post has raised $1,368,065 from the finance, insurance, and real-estate sectors, and $860,919 from the lawyer and lobbyists sectors among 6 races for public office.
Representative Giovanni Capriglione [R]
According to www.followthemoney.org, the Representative as of the date of this post has raised $219,434 from the finance, insurance, and real-estate sectors, and $65,174 from the lawyers and lobbyists sectors among 5 races for public office.
How this Affects Homeowners
Insurance deductibles are a cost sharing mechanism that has the policy holder on the hook for a portion of the cost to recover from a loss incurred that is covered under an insurance policy. More importantly, deductibles serve as a mechanism to make an insured person think twice before filing a claim with the consideration of the cost they may incur out of pocket.
This may seem like a reasonable proposition. The issue is the various methods used by property insurance companies that are riddled with variables that place the insured in a position to be taken advantage of. It is popular with insurance companies to provide policies that equate your deductible for loss claims to the dwelling coverage amount. For example, if a home's dwelling coverage is $300,000 and you have a 2% deductible for hail or wind damage, the resulting claim approval will require a $6,000 deductible to be paid out of pocket. That $6,000 is deducted from the estimate that your insurance deems the cost of repairs will be, and you receive the remainder as your claim payment. Insurance companies claim to base the dwelling coverage amount provided in a policy on data that represents how much it would cost to cover a total loss of the dwelling. The accuracy of the estimation for a dwelling coverage dollar amount, and the never ending annual increases of dwelling coverage automatically applied to policies, allow the insurance company to steadily shift the potential cost burden of a claim onto the policy holder.
Very few homeowner insurance property claims represent total losses. Think about it as a home burning to the ground or a home having a direct impact from a tornado that is destroyed. That is a very rare occurrence in relation to the number of homes insured. So this leaves the more common losses from things like storm damage being the most likely reason you may ever need the assistance of your homeowners insurance policy. Things have steadily been moving in the direction of homeowners shouldering a growing portion of the cost of those type of claims.
When you add in the shift of insurance companies aggressively marketing homeowners insurance policies that are based on Actual Cash Value payment for losses you have the perfect combination for insurance to collect your growing premiums while simultaneously reducing claims payments. Most homeowners that have an Actual Cash Value policy don't even realize it or understand what that involves. A claim made toward an Actual Cash Value policy allows the insurance company to adjust your claim based on what they view to be the depreciated cost of what they are covering. Based on the estimated age of an item (such as your homes roof) the insurance company is able to reduce the amount they are liable for by coming up with a value that represents the reduced value that comes with aging. They refer to this as depreciation and they pay nothing for the aged portion.
Those that have a Replacement Value policy are typically in a little better position. In the event of a loss, and subsequent claim, the insurance company will pay a claim based on the actual cost to repair an item to like new condition. Policy premiums are typically higher for this form of coverage, but can leave you with less out of pocket to restore a loss. Although the deductibles on a Replacement Value policy are still being gamed by the same strategies described above to continuously shift the burden for common claims to the homeowner.
Last but not least is the topic of cosmetic damage waivers or exclusions. A tool used by insurance companies for homeowners policies to further reduce claims, by denying claims as cosmetic only damage. In the instance that you have visible damage, some homeowner policies provide the insurance company a path to denying the claim by determining that the damage is cosmetic in nature and doesn't affect the performance or protection that a damaged item is intended to provide. Think of a roof, gutters or siding that has been damaged by a hailstorm. There may be various forms of visible damage, but an insurance company has the right to say that the damage is solely cosmetic. Here again, many homeowners don't realize when they have this category of exclusion in the coverage that they are paying for.
The property insurance industry is astronomically profitable. They spend fortunes on advertising telling us why we can trust them and how they will be there in the greatest time of need. They also spend a fortune on lobbyist that play a huge roll in financing candidates in elections. It is very hard to see the recent actions by Texas lawmakers as anything other than returning a favor to those that contribute massive amounts of money to their campaigns, among other untold perks.
The property restoration and roofing contractor industry is largely unregulated in Texas. This comes with some pitfalls and occurrences of unscrupulous contractors harming homeowners. It would be wonderful if our lawmakers would address the topics that allow those harmed by contractors to face stiff criminal penalties. The reality is that the greater community of Texas storm restoration contractors perform to very high standards and help our state recover from catastrophe very quickly when needed. The absence of politics and red tape is what has always allowed us to efficiently recover from perils for decades. The news loves to report on the bad actors and make a show of when people are harmed. Unfortunately they never report on the hundreds of thousands of homeowners that are well cared for in an efficient and professional manner.
This law does not address anything that benefits or protects homeowners. It simply added to the bureaucracy that benefits the insurance industry. People avoiding out of pocket costs and failing to meet deductible obligations involved with property claims is definitely an argument for the ethics debate. Although, if you weighed all of this together, it would be many years of debate over the ethics involving the insurance industries position before we would ever get to the topics covered in HB 2102.
Comparing roofing shingles can be a pretty daunting task. Every manufacture has reasons that they feel they manufacture the best products. When it comes to 3 tab style shingles, one manufacture really stands out for us.
Malarkey Roofing Products has a 3 tab shingle that is setting a new standard. The Malarkey Dura-Seal AR 3 tab shingles have a long list of innovative characteristics that should make it a consideration any time you're replacing a 3 tab style roof.
The most impressive detail of this shingle is its Class 4 impact rating. This rating means the roof shingles are capable of withstanding the highest impact rating for hail or flying debris that is available. It also allows us to provide a certificate in the state of Texas that allows the homeowner to receive a discount on their homeowners insurance policy.
These are a few of the other key features:
NEX® Polymer Modified Asphalt
Modified asphalt technology increases shingle flexibility, granule adhesion, and impact resistance.
3M™ Smog-Reducing Granules
One roof has the same smog-fighting potential as 2 or more trees (assuming standard roof of 30 squares).
Streak Resist™ Technology
A blend of algae resistant granules.
Reflect Damaging Solar Rays
Dura-Seal™ Ivory Mist, Sienna Blend, and Silverwood shingles reflect solar rays which may reduce the heat entering your home and extend the life of your roof.
The best consideration of the Malarkey Dura-Seal AR shingle is that the cost is comparable to most other 3 tab shingle products on the market.
Choosing a shingle for your residential roof replacement is a very personal decision. You can probably see from these details that considering this shingle should be a part of your decision making when replacing a 3 tab roof system.
Here's a link to the page on the Malarkey Roofing Products website that you can read more about the Dura-Seal product line. Click Here
- Harvey Roofing & Construction