Insured Property Owner Guides

Warren Buffet and “The Float”

Both the increase and longevity of Buffet’s wealth are directly tied to a key feature of his core business: the insurance float. What is the float? To begin with, the float is money insurance companies hold but don’t own. In an insurance operation, float arises because premiums are received before losses are paid, an interval that sometimes extends over many years. During that time, the insurance company invests the money with the expectation that the ROI will be substantial and allow them to increase their profits even in years where policyholder claims are higher.

In the past, in years where claims were higher than anticipated, their profits and ROI naturally decreased. Over the past few years however, rather then accept the costs of increased claims and the ROI and profit decreases, insurance companies, particularly those who sell property & casualty insurance did, in order to preserve profits, change their policyholder claims paying model to one where profit preservation is achieved – in good years and bad, through unfair minimization of claims payouts amounting to billions of dollars every year. The end result:

Billions of dollars-worth of legitimate policyholder claims settlement dollars are never paid each year and, as it concerns building product distribution companies, billions of dollars-worth of roofing and related building products are therefore, never sold to the restoration contractors who would have completed the repairs of their insured commercial and residential property owner customers properties. Also of concern is the fact that, with the above in mind, unknowing institutional and individual investors in the building products distribution companies never achieve true maximum ROI on the money they have invested in the building product distribution company.

In order to “level the playing field”, based on over forty years of retail and restoration construction contracting industry experience, twenty years of insurance and investment advisory experience to high level business executives, and a winning Pro Se legal experience record, a number of years ago I wrote a restoration contractor training program that teaches contractors how to, through an entirely different and Pro Se legal experience based approach to the insurance claims process, in fact, as I have proven, “beat P&C insurance at their own game”.

I recently re-wrote the entire program and now offer it to building product distribution companies to provide to their thousands of valued restoration contractor customers across the country. Once put into practice by their contractor customers, the building product distributor who does make the program available will begin to exponentially recapture those previously (and annually) missed billions of dollars worth of sales that should have been made. In the process, the investors in the building products distribution company that does make the program available to their contractor customer’s will be able to then achieve, not the “promised” ROI’s on their investments but rather real and true maximum ROI’s. The program begins with teaching contractors how to overcome the “industry standard” implied mandate that causes contractors to believe the must use one of the particular insurance industry owned and controlled repair estimating programs shown below.

Just as the infamous and since pardoned Dr. Anthony Fauci convinced all of us that “masking up” was essential in protecting our physical health several years ago, through similar misleading tactics, over the past twenty plus years, the P&C insurance industry has convinced the majority of restoration contractors – many who are newer to the restoration industry, that using insurance adjuster mandated repair estimating programs such as Xactimate and Symbility/Cotality was and is essential in helping them to achieve maximum repair accuracy and pricing. As illustrated in the “Weaponizing Xactimate” article copy through the PDF link directly below however, it is shown that, to the great detriment of insured property owners, their restoration contractors, the contractors building products distributors, and, just as important, their investors who are unaware of the resulting tremendous building products sales deficits, neither of the above mentioned products truly allow restoration contractors to achieve that goal.

“Weaponizing Xactimate: The Insurance Industry’s Dirty Little Secret”

With the above in mind, the graph below clearly illustrates why restoration contractors who have bought into the Fauci-esque “the industry standard” repair estimating program is the best choice mantra need to break free of those forced market controlled and so-called “industry standard” repair estimating programs. Instead, they need to declare their independence by switching to using the non P&C insurance industry promoted contractor favored repair estimating standard that allows restoration contractors to price their customers insurance covered repairs at real, true, and accurate (RTA) free market pricing so they can start earning what they are worth and deserve. A comparison of the numbers shown in the graph below tells the whole story.

There is no law or rule that contractors must use “the industry standard” and, as shown below, there is no advantage in doing so.

Recover the cost of 3RSystems, LLC restoration contractor training on your first after purchase repair job!

Learn more and see what 3RSystems, LLC training has done for other restoration contractors at:

www.3RSystems.com/proposal