GCO&P on Hail claim in Texas

[ninjasaurus]

Hey good evening all. Had a recent loss on my home in Texas from hail that involved multiple different damages (Roof, gutters, windows, fence, garage door, etc.)

I have RC coverage. Adjuster explained to me how to read estimate, and explained the GCO&P as "this this the additional cost a general contractor would add on for the service of coordinating all of these contractors. If you want to act as your own general contractor, you can keep this money, that's compensation for your time coordinating everything". Seems reasonable.

State farm lists RCV as inclusive of the GCO&P & Tax. So for each line item you get something like (I've rounded these):
Tax 700
GCO&P $3,000
RCV $33,000
Depreciation $2,000
ACV $28,000

So here's me questions.
1. If I do decide to act as the general contractor, and thus am entitled to the Gco&p according to the adjuster.. The roofer should only bill me for $30K right? Or are they going to ask for $33k anyway?

1. How is GCO&P calculated, and is there a standard? It looks like I'm getting 5% & 5% in my estimate. My roofer was at the adjuster appointment and when i asked him about this he said, yeah the adjuster told me he was going to do that, it's normally 10/10 but he was trying to get the amount down to make sure it got approved. He apparently "did me a solid" by being pretty thorough on everything covers and perhaps on the lifetime estimates for depreciation, etc. I think roofer (who wants to GC whole project) believes he will file for supplement later asking for 10/10. If I intend to act as GC for myself, is there anything I can do to get insurance to up their GCO&P to 10/10? This does seem the normal amount and it's even the number state farm uses in their example for "how to read a claim".
2. If I do any of the work myself, can somehow still recoup the depreciation? Particularly my fence needs new stain and they wanted to pay like $2500 ACV or $3500 RCV. It would be annoying as hell but I'm pretty sure it's only a few hundred dollars of supplies to stain, plus my own labor. Should I get the full $3500 that way or no?

Thank you in advance!!

 

[straw23]

@ninjasaurus I'm an independent adjuster in Texas. For every carrier I've ever worked for, O&P has either been 10%/10% or not allowed. On a claim with only exterior damages like you named, most carriers I've worked for would probably not allow overhead and profit at all (at least not at first), so its good State Farm did.

As for increasing the percentage, I can't really say. If I didn't allow O&P on a claim, and a homeowner called demanding O&P and saying he was going to act as his own general contractor, I would probably use that as evidence a general contractor wasn't necessary, and thus no O&P was warranted. Of course, I could be overruled by those above me, but that would be my initial thought at least. To be honest, in over 10 years, that scenario has never once happened.

If the roofer is just replacing the roof, and not hiring subcontractors to replace your windows, gutters, etc, then he shouldn't ask for or be entitled to O&P.

 

[ninjasaurus]

@straw23 Thank you for the reply!

I'm not entirely sure I will act as the GC myself, but the difference between 5/5 and 10/10 certainly makes a case for doing it on my own. But if the roofer would get it on the back end, I feel like I should get it too (if I go that way). And in any case the O&P does seem to impact the ACV number as well.

I certainly won't be calling anyone demanding anything, I was just more trying to understand what correct process was, and how they got to 5/5 which seems super abnormal. Thanks again!