This is a replay of an episode originally aired on Apr 15, 2025.
A Texas adjuster gets an assignment for a simple hail damage claim. He anticipates having to argue with the roofing contractor, debate whether overhead and profit is owed, deal with the supplementing company, receive an appraisal demand, and finally face a lawsuit.
About Our Guest
Steven J. Badger, Partner, Zelle LLP
sbadger@zellelaw.com
https://www.linkedin.com/in/steven-badger-467b0322/
Notable Timestamps
[ 00:20 ] - Because of his years of experience, he knows that the 30 square comp shingle roof should cost about $20,000 to replace. (Amount provided is for reference and example purposes only.)
[ 01:10 ] - For 34 years, Steve Badger has represented mostly the commercial property insurance industry, and for the past decade has focused on catastrophe, hail, and wind claims.
[ 02:00 ] - Many policies allow the insurance company to replace the roof themselves through preferred contractors.
[ 04:15 ] - Having an "preferred contract network" or "managed repair" endorsement can reduce ambiguity as compared to the base policy.
[ 05:50 ] - Such endorsements could be optional or mandatory.
[ 07:00 ] - Steve argues that these endorsements can be a win/win/win for the insurer, insured, and contractor.
[ 08:20 ] - Steve explores the potential benefits of the endorsement, such as reduced deductibles.
[ 09:15 ] - Invoking "our option" means that if-- for example-- the selected contractor floods the house, the insurer could be responsible. However, an endorsement in this style could allow the insured to choose to employ the network. Further, contractors in the network could assume the risk.
[ 11:15 ] - Steve discusses industry interest in preventative solutions.
[ 13:00 ] - Steve contrasts the contractor who put on the roof asking for a supplement to a separate company focused on supplementation, and shifts focus to the insured's needs.
[ 16:10 ] - Steve provides a recap of the scenario and the points above.
Your PLRB Resources
Steve will be presenting at the Texas Hail Claims Conference on February 12-13, 2026 in Dallas.
Recorded Webinar: Combatting Common Abuses and Schemes in CAT Claims - https://www.plrb.org/courses/combatting-common-abuses-and-schemes-in-cat-claims/
CE Course: Roofing Fraud: Don't Get Nailed - https://www.plrb.org/courses/roofing-fraud-dont-get-nailed/
Employees of member companies also have access to a searchable legal database, hundreds of hours of video trainings, building code materials, weather data, and even the ability to have your coverage questions answered by our team of attorneys (https://www.plrb.org/ask-plrb/) at no additional charge to you or your company.
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Legal Information
The views and opinions expressed in this resource are those of the individual speaker and not necessarily those of the Property & Liability Resource Bureau (PLRB), its membership, or any organization with which the presenter is employed or affiliated. The information, ideas, and opinions are presented as information only and not as legal advice or offers of representation. Individual policy language and state laws vary, and listeners should rely on guidance from their companies and counsel as appropriate.
Music: "Piece of Future" by Keyframe_Audio. Pixabay. Pixabay License.
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