Radically transforming the insurance restoration business model

By

Larry Burtis, President – 3RSystems, LLC

 

 

 

3RS Review, Reposition, Recapture© is the same financial advisory model and concept I created and have successfully used over the years to help business leaders, from construction company owners to leaders of some of the country’s most well known non-construction related corporations, to achieve superior financial results that others who had came before failed to help them achieve.  Included among that group are Bruce Dayton, co-founder of the Dayton-Hudson/Target Corp., and Anthony Adducci, co-founder of Cardiac Pacemakers, Inc., Anthony Adducci Technology Enterprises VC, and the North American Banking Company.  

 

Review

The current status of the insurance restoration industry

Up until the year 2010, contracting storm damage restoration work was still a relatively simple process.  With the introduction of Unauthorized Practice of Public Adjusting (UPPA) law around that time however, and the continued misbelief on the part of restoration contractors that using the same P&C insurance industry Xactimate repair estimating software program as their insurance adjusters were required to use offered an advantage to restoration contractors, the restoration industry was reduced to a shadow of what it had once been.  In truth and in fact, those changes made it impossible for restoration contractors to conduct their insurance restoration contracting businesses in the same manner as they had been able to do in the past.  

As the P&C insurance industry and their lobbyists fully knew, once restoration contractors fully bought into the UPPA and Xactimate schemes, P&C insurance would be able to save billions of dollars every year by underpaying or fully denying legitimate insured property damage claims en masse.  Not only did that new reality dramatically and negatively affect the profits of the insured’s contractors, it had the same effect on the profits of the contractors roofing and related building product distributors.  It has also caused many contractors to leave the business.  In fact, more contractors are now leaving the business than are being replaced by new ones.  

Xactimate, which was developed by Xactware, is owned by Verisk Analytics, a company owned and controlled by major global financial players including companies that control the P&C insurance industry.  In that position, they are able to exert a high degree of control over how insurance restoration contractors customer’s property damage claims are paid.  Unauthorized Practice of Public Adjusting (UPPA) law, which, as a leading national expert on the subject, I call one of the biggest financial and potentially unconstitutional scams every perpetrated against the American insurance buying public, gave P&C insurance what is, for all intents and purposes, license to steal by prohibiting restoration contractors from being able to negotiate their insured customers property damage claims with their P&C insurance companies as they had been able to do in the past.

The estimated annual missed sales cost to restoration contractors due to their lack of advanced insurance restoration claims process training = $5,000,000,000B.  The cost of the above to roofing and related building products distribution companies?  In Toto, the amount of roofing and related building product product sales missed every year by the top five USA roofing and related building product distribution companies since 2010 is estimated to be in excess of  $1,500,000,000B. 

The primary reason behind those many millions of dollars worth of annually missed sales?  Lack of advanced, substantive, and proven storm damage restoration contractor training and distribution company failure to invest in such training that once put in place, would allow them to recapture those annually missed sales from their valued contractor customers.  Contractor hotel training seminar programs that offer a free lunch are enticing – who doesn’t like a free lunch?  Such training however, repeatedly provides less than adequate training because several of the key essential elements taught only by 3RSystems, LLC restoration contractor training are missing from all of the others.    

Recently introduced roofing and related building product distribution company multi-million dollar CRM subscription programs which will likely produce a substantial ROI for the PE investors, may be helpful to contractors in terms of increasing efficiency but they offer nothing in the way of helping insurance restoration contractors to advance their skills and overcome the hurdles placed in their way by the P&C insurance industry.  Building product distribution company directors and investors/shareholders are likely oblivious to the problem because C-Suite execs are either also oblivious to the problem or, although knowing, fail to inform directors and investors/shareholders who need to be made aware – as they are about to be on an international basis.   

Every year, an army of tens of thousands of restoration contractors pay billions of dollars to their building product distribution companies for their roofing, siding, and related building products.  Obviously, without those billions of dollars worth of annual restoration contractor orders, building product distribution companies would not be able to survive.   Also obvious is the simple fact that investing in advanced training of that many thousands strong restoration contractor army will make the the building product distribution company that has the vision and the wisdom to indeed make the investment, stronger and more profitable than ever.  

Reposition

A powerful, positive, and necessary change in perspective 

With the passing of the previous administration and the repositioning of both minor and major approaches to how the country is run, we are embarking on a tremendously positive sea change that will dramatically improve the lot of all American citizens.  The same holds true as it pertains to what this writing is all about.  That will only happen however, if those who are in the best position to make the necessary changes (i.e.), roofing and related building product distributors, make the necessary investment, and take the necessary actions to bring about the change.   It is my commitment and my goal to see that they do – in the present.       

Recapture

By, per my experienced recommendations, repositioning your efforts into making sure that your tens of thousands strong army of valued contractor customers are properly trained, those Xactimate, UPPA, and various other hurdles which are at the heart of the problem, will be greatly minimized if not made entirely of no consequence.  Your distribution company will then be able to rise to a top building products distribution industry position which will also get the positive attention of both current and future investors and shareholders.  

Once insurance restoration contractors learn how to overcome those P&C insurance industry placed UPPA, Xactimate, and various other hurdles, insurance restoration contractors are then able to price their restoration contracting work at real, true, and accurate (RTA) free market repair pricing and account for and get paid for all of the legitimate damage that P&C insurance adjusters regularly intentionally omit. The benefit then accruing to their building product distribution companies?  An annual recapture of those missed roofing and related building product orders by the roofing and related building product building product distributor as illustrated shown further down this page.    

Insurance restoration contractors will be able to help their insured customers to maximize their legitimate property damage insurance claims which will then require that they order all of the hundreds of millions to billions of dollars-worth of additional roofing, siding, and related building materials needed to fully complete the repair work – that were previously left unordered.   They’ll also be able to complete more work in much less time. 

As illustrated under the 3RStimax© repair estimation platform example from the Home page, your contractor customers profits will dramatically increase as they achieve higher per job pricing, achieve more and higher payments for GC Overhead and Profit, and help their insured customers to, in most cases, avoid the need to hire public adjusters, appraisers, or attorneys.  As word spreads about the availability and the success of the program, your competitors contractor customers will be drawn to and will want to bring their business to you.  All of the above will also help your valued contractor customers to remain viable long beyond the typical three to five year contracting company life span.

Through the above, once instituted, your distribution company will be able to recapture those hundreds of millions of dollars in annually missed product sales revenue from your contractor customers.  On a conservatively based average projection, each of your newly trained contractor’s will achieve an additional $250,000 in restoration contract sales per year and earn an additional five to ten percent per job profit.  From that $250,000 per contractor figure, $78,750 or roughly 31.5% will go to pay for the needed roofing and related building products that would previously been left unordered.

Distribution company sales revenue Recapture examples:

Recapture example 1:  $250,000 x 30,000 contractors = $7,500,000,000 dollars-worth of annual additional contractor insured customer sales.  $7,500,000,000 x 31.5% = a recapture of $2,362,500,000 dollars-worth of additional roofing and related building products annually ordered from the participating distribution company.

Recapture example 2:  $250,000 x 20,000 contractors = $5,000,000,000 dollars-worth of annual additional contractor insured customer sales.  $5,000,000,000 x 31.5% = a recapture of $1,575,000,000 dollars-worth of additional roofing and related building products annually ordered from the participating distribution company.

Recapture example 3:  $250,000 x 10,000 contractors = $2,500,000,000 dollars-worth of annual additional contractor insured customer sales.  $2,500,000,000 x 31.5% = a recapture of $787,500,000 dollars-worth of additional roofing and related building products annually ordered from the participating distribution company.

It really is no more complicated than that.  The key to achieving that goal however is only by getting our one of a kind advanced 3RS Claims MAX© restoration contractor training program into your contractor customers hands forthwith.  

As should be clear to any roofing, siding, and related building products distribution company director, C-Suite exec, or any national, district, or branch manager who has read through the information contained on this page and through the Home page, because of the drastic changes in the restoration industry over the past few years, the old building products distribution model has become outmoded and is no longer viable.  The solution to the problem?  The easiest to learn but most advanced and comprehensive storm damage restoration contractor process training program in the industry today – only available from 3RSystems, LLC through secured access provided only to the distribution company who subscribes to the program.

As of January 20, 2025, 3RSystems, LLC will begin exponentially increasing our national campaign to get the word out to the many thousands of USA storm damage restoration contractors across the country about the value of completing our exclusive and repeatedly proven 3RSystems, LLC storm damage restoration contractor insurance claims process training program.  We will also be advising additional millions more insured USA residential, commercial, and multi-housing property owners from across the country of the great benefit in hiring a 3RSystems, LLC trained storm damage restoration contractor to complete their insurance covered storm damage property damage claims.  If your distribution company is not offering our advanced restoration contractor training program, they’ll be wanting to know why not.  

Your move…   

 

Total upfront lifetime exclusive investment by distribution company:  $2.5M   

Feel free to contact 3RSystems, LLC on how to move forward – before your competition does.

 

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Got questions or concerns about the program or otherwise? 

Feel free to send them to me through the Contact link on this website

Thanking you in advance for your thoughtful consideration!

Larry Burtis – President, 3RSystems, LLC

 

 

 

DISCLAIMER

Other than offering an experienced opinion in reference to the above, none of the above is or should be construed as tax, insurance, investment, or legal advice.  Neither the writer nor the company or companies mentioned gives tax, insurance, investment, or legal advice.  If you need such advice it is recommended that you consult with a licensed professional practicing in the area of your concern.