Insurance Job Ethics

[growler]

Looked at a job earlier today ( home inspection report type thing ). About 9 months ago there had been a lightning strike at a residence. I guess there had been damage to the main breaker and maybe the SE cable ( the only changes made was a new service ).

Here's the thing they could have replaced the panel at it's existing location except for the fact that the homeowner had a cooler in the working clearance space and not a built in cooler either. So the contractor moved the panel location to the garage and used the old panel as a junction box and was now forced to use all arc faults because of the extended circuits and this became a very expensive project.

The contractor bills the insurance company for $11K for a service change when the job could have been done much cheaper by telling the customer they needed to move their drink cooler out of the working space of the original electrical panel.

Anyone think this was ethical or maybe even not legal. Don't get me wrong they did a nice job but eleven grand for a 150 amp service?

 

[Canton]

Looked at a job earlier today ( home inspection report type thing ). About 9 months ago there had been a lightning strike at a residence. I guess there had been damage to the main breaker and maybe the SE cable ( the only changes made was a new service ).

Here's the thing they could have replaced the panel at it's existing location except for the fact that the homeowner had a cooler in the working clearance space and not a built in cooler either. So the contractor moved the panel location to the garage and used the old panel as a junction box and was now forced to use all arc faults because of the extended circuits and this became a very expensive project.

The contractor bills the insurance company for $11K for a service change when the job could have been done much cheaper by telling the customer they needed to move their drink cooler out of the working space of the original electrical panel.

Anyone think this was ethical or maybe even not legal. Don't get me wrong they did a nice job but eleven grand for a 150 amp service?

Technically its a legal and code compliant installation. Sure, obviously there were other cost effective installation options that could have made it code compliant (move the cooler maybe :huh Lets do the math here...$2000 panel replacement or $11,000......who's paying....insurance company....lets move the panel:thumbsup:

Strange though...usually the insurance company cuts the owners a check or asks for an estimate before work commences.

 

[ptonsparky]

I like $11k. Depends on how set the spouse was on furniture arrangement. Given the dollars a suggestion would have been nice.

 

[ActionDave]

Cross reference some of the responses in this thread http://forums.mikeholt.com/showthread.php?t=160599 with yours and one could justify what was done.

Based purely on what you have described I would not have moved the panel.

 

[jumper]

I would say that the insurance has cause not to pay for moving the panel, just replacing it.

The cooler was probably placed there after the original install and could easily be moved out of the way.

I could see a insurance company having to pay for moving the panel if reinstalling a new one in the same place created a violation, say putting it back in a clothes closet, which was legal once, but no more.

 

[ceb58]

I would say that the insurance has cause not to pay for moving the panel, just replacing it.

The cooler was probably placed there after the original install and could easily be moved out of the way.

I could see a insurance company having to pay for moving the panel if reinstalling a new one in the same place created a violation, say putting it back in a clothes closet, which was legal once, but no more.

Agreed, replace the panel in the same location and move the cooler out of the way for inspection. What the HO dose with the cooler after you leave is his business. I would think with something costing that much they would have had to have the insurance company sign off on it first. If the customer was dead set on not moving the cooler and the insurance company agreed, then break out the tools.

 

[growler]

I would say that the insurance has cause not to pay for moving the panel, just replacing it.

The cooler was probably placed there after the original install and could easily be moved out of the way.

I could see a insurance company having to pay for moving the panel if reinstalling a new one in the same place created a violation, say putting it back in a clothes closet, which was legal once, but no more.

That's what I was thinking. The homeowner created the code violation when they installed the drink cooler.

It's my understanding that the insurance company paid the claim and canceled the homeowner's coverage. It really sounded as if they had been trying to milk the system.

 

[growler]

Strange though...usually the insurance company cuts the owners a check or asks for an estimate before work commences.

I thought it was real strange that a company could get that much out an insurance company for work that didn't need to be done.

 

[mjf]

The insurance company certainly did not do their homework. I can hardly believe that they paid the full claim.

 

[growler]

The insurance company certainly did not do their homework. I can hardly believe that they paid the full claim.

The more I think about it the more sense it does make.

1. The work was done by one of the biggest service companies in the country.
2. A lightning strike would be an emergency service call.
3. They could bill an unknown amount of time just for checking out the rest of the house wring to make sure it was not damaged.
4. In the area where the cooler was located the floor was not tiled and that would have cost money to fix. ( they tiled around the cooler when they tiled the floor). Could have used this as a reason not to move the cooler.

It's just that when people tell me they had to pay $11K for a 150 amp service my head start to spin and I wonder what's happening in the world.

I advised the prospective buyer that if he does purchase the home that he should try to get his hands on any and all paper work concerning this incident.

The fact that the property did pass inspection for a new service just 9 months ago is a good thing and haveing all circuits protected by Arc Fault breakers is even better. But keeping the paperwork for the company that actually did the work is still a good idea.

 

[petersonra]

The insurance company can take care of itself. It is between them and the insured just what they will pay for. The EC is just doing what the guy paying the bill wants. As long as it is code legal, that is what matters. Whether it could have been done cheaper is not the issue IMO.

 

[cowboyjwc]

Gotta be careful not to get sucked into an insurance fraud issue.