Choosing My Contractor

Three Ways An Insurance Claim Funding Company Helps Contractors Repair Damaged Homes

31 January 2019

Diego Rojas

If you are a contractor that does work repairing homes after they have been damaged, then you have undoubtedly been involved in working with homeowners, insurance companies, and insurance claims. There are many headaches involved in the process of getting paid or securing the needed money in advance before beginning the job. However, many of these issues fade away when you use an insurance claim funding company that specializes in helping contractors. The following will give you can idea of what they do and how it helps your business.

They will open up more possible work

If you have been shying away from work that involves insurance claims because it is simply more trouble than it's worth, you can relax. Once you hire a contractor insurance claim funding company, they will be the buffer between you, the insurance company and the homeowner as it pertains to payment. All of the jobs you have avoided can now be taken without any stress over payment or complex paperwork. You will be able to offer your business's services to homeowners after fires, storms or other sources of damage to a home.

They will help to keep your overhead low

Although an office staff is a necessary part of the contractor business, it is best to keep this overhead to a minimum. If you are taking a lot of business from homeowners that are dependent on paying you from an insurance claim, you will likely need to have paperwork that will require the insurance company to bypass the homeowner and send payment directly to you. Unfortunately, you will need to have staff that is trained and dedicated to accomplishing this. They will need to work with several insurance companies, and be able to explain to homeowners how the process will work. All of this takes a payroll that reduces profits. Subcontracting this work saves money.

They will prevent jobs from being on hold due to funding issues

One of the big problems with doing repair work for insurance claims is getting money upfront for the materials needed to begin the work. Even if you have money for your payroll, raw materials can be a big expense on any job site. Waiting for a homeowner to have their claim processed, then having them write you a check can take longer than necessary. As one of their services, a claims funding company can go ahead and arrange payment for the materials that you need to get the job rolling. This allows for fewer delays at the start of a job, and this, in turn, means the job will be finished faster.

The profits you earn as a contractor should be the result of repairs to houses and other structures after they have been damage. By using a claims funding service company, you can focus on what you do best and let your profits grow.

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