How to read an Insurance scope PART 2 – Exam 3
There a few details that may occur from time to time that you will need to be aware of when dealing with insurance scopes. These details can make a big difference in pricing out a job correctly. The office will charge correctly, so being aware of these few things to look out for will let you save time and trust with your customer.
We all can miss small items like haul away charges for non-roofing material jobs, or forget to add job labor minimums, but there are 2 other charges or differences to look out for.
1. Line items in the wrong section or that do not belong.
This insert is of a scope of a claim for 1 of out customers. Their roof section includes line 18, a price to remove and replace their gutters. If the customer was wanting to know how much we would charge for just the roof, this line would have to be subtracted from the roof total of $16,833.76.
2. Taxes or/and O & P added apart from the rest of the claim.
Normally, both taxes and O & P (if applicable) are added to every line item. They are calculated for each section in the RCV.
There are a few insurance companies that list them as separate line items in the summary page, so they can drastically change the total if left off.
Here, the RCV does not include tax, just material and labor cost.
Rather, there is a recap of taxes to show the total amount of taxes for the entire claim.
Because of the lack of taxes for each category, it can be difficult to know the grand total for the jobs your customer wants. What we do is to see how much of the claim total we are building, then use this percentage to add that percentage of the taxes to the job total.
425.36 x 50% = 212.68
8,000 + 212.68 = 8,212.68
O & P would be calculated the same way.
Say your customer only wants to do the roof. The entire claim is 16,000. The roof is 8,000.
Since the portion we are doing is 50%, we will take 50% of the taxes and add it to our job price total.
It is important to be able to explain to your customer every section that adds to their total. We have the customer selection sheet that allows you to break down trades in sections so that it is easier for your customer to understand. If you have any questions on a job total it is important to reach out to your manager to help.
Click the following Insurance Scope links X,Y, & Z to view and be able to answer questions on the test.