One of the first terms I learned in real estate is the concept of "Caveat Emptor," which means "Let the Buyer Beware." Nothing in property management better represents this term than the circumstances surrounding hail damage. As we head into winter, I'm thankful (hopeful?) we won't have to worry about thunderstorms raining hail down on our expensive rooftops and HVAC units exposed like sitting ducks, because if/when it happens, we then have to evaluate sales pitches by roofers/general contractors, some legit, some maybe not so much...as they promise MANNA from our insurance companies. They will say: We'll get you a new roof!!! We'll get you new HVAC units!!! Hallelujah brother!! There's just this little voice in my head asking: Is it true? If it is true, is it right?
Even if it is true and even if we believe it is right for us to pursue a claim for our client, what does it mean for our future premiums and those of other property owners? It's definitely a "buyer beware" situation. A newsletter published by "Texas for Lawsuit Reform" recently outlined exactly this conundrum.
The column cited concern for the potential of abuse by what they called the "Hail Cartel" which they defined as unscrupulous roofers, public adjusters, and attorneys intent on getting as much as they can from the insurance industry. In this scenario the property owner may believe they benefit by getting a new roof/HVAC system, but if the contractor you're working with is, um..shall we say...ethically challenged, can you trust their workmanship? I don't think so. Caveat Emptor indeed.
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