Why Your Roof Matters More Than You Think!

In this video, we discuss the importance of roof maintenance and how to protect your home from costly repairs. Our experts share valuable roofing insights and practical roofing tips to help homeowners avoid common mistakes. Plus, we dive into gutter maintenance and its crucial role in home improvement. 🏠✨

Chapters

• 0:00 Intros and Guest Backgrounds
• 3:00 Why Home Insurance Confuses Homeowners
• 6:40 Brokers vs Online Insurance Shopping
• 12:50 Claims, Coverage Gaps, and Agent Access
• 17:40 Roofing Business Model and Integrity
• 22:30 Safety, W‑2 Teams, and Responsible Ownership
• 26:40 The Roof Replacement Journey
• 31:20 ACV vs RCV and Depreciation Math
• 36:20 Real Roof Costs, Supplements, and Missed Items
• 40:40 Upgrades, Impact Shingles, and Metal Exclusions
• 46:40 Inspections, Leaks, and When to Call
• 51:00 Don’t Call Insurance First: Claim History Risks
• 55:30 Solar Panels, Coverage, and ROI Tradeoffs
• 1:02:30 Solar Removal, Warranties, and Roof Age
• 1:06:40 Deductibles, HB 2102, and Legal Lines

Transcript

SPEAKER_04: 1:00

And welcome back to another discussion on Key Factors Podcast Real Estate AF, where the AF stands for and finance. And I'm your host, Mark Jones, and we are powered by Lone Bot. And um lately we've been having a lot of off-the-wall discussions, and I figured we'd continue that. Um, today I am gratefully joined by some important guests that um we're gonna be getting into roofing, insurance, uh, real estate, mortgage, how it all ties together, and what you guys should be focused on, either homeowners or home buyers and realtors out there, um, and some advice in the end, hopefully. So, without further ado, I would like to introduce my guests, and I will introduce the most important last um because it is her first time on a podcast. I don't know how the hell the other guests got her to join, but um uh so without further ado, let me introduce my first guest. I've got Marcus Loffy sitting in front of me. Marcus, how are you? I'm good, Mark. Good to see you. Likewise. Um, so after I introduce the guests, I'm gonna give them a moment to talk about themselves. Uh, we've we've got Tom Mosley. What's going on, Tom? Morning, Mark. How are you? Doing well. I never thought I'd see you uh in my podcast studio uh rapping about good stuff. So I'm excited about this one. That makes two of us. And then my last but not least guest is Kristen Jones. She's finally joining the podcast.

SPEAKER_01: 2:30

Finally joining the podcast.

SPEAKER_04: 2:31

Hello, Kristen Jones. How are you? I'm wonderful. Yeah. Yeah. Okay, good deal. So, real quick, um, Marcus, if you want to kick us off, tell us a little bit about yourself, sure, what you do, um, and why people should be listening to you today.

SPEAKER_00: 2:42

Sure, sure. So I I do own a real estate brokerage. It's obviously, you know, how we know each other, how I know Kristen. And um, you know, a few years ago, Tom, Tom and I have known each other for 40 years. Uh he'd been in roofing and solar for a long time and talking about uh, you know, want to make that jump. And we finally partnered up and and took that uh that leap of faith. It's been it's been very nice. So currently running both businesses, but uh, you know, we run into a lot of issues and and um a lot of times we have to bounce things off of insurance agents in the industry. And I thought it'd be a great idea if we could all get together and kind of see how it all ties together, you know, uh real estate, loans, roofing insurance. I mean, ultimately, you know, that's pretty important to the loan officer when they're trying to figure out DTI issues and all of that, right? So insurance agents are a key part of the process.

SPEAKER_04: 3:29

Absolutely, and I'm excited about this one. So, Tom, tell us about yourself. Um, not really associated with real estate other than buying it, um, but what's going on and renting it and owning it, you know. Tom, how are you? I'm well, Mark. Tell us about yourself.

SPEAKER_02: 3:46

Well, I like long walks on the beach. Uh, seriously. I think that the reason I agreed to do this after Marcus came to me was because I find out a lot of homeowners are very lacking in knowledge about insurance and the coverages and stuff like that. So I got into solar and roofing back in 17, 18, somewhere in there. And I find a lot of homeowners just don't know what their coverages are. So I think a talk about this with a nice licensed uh insurance person is gonna help educate folks. And I think that goes a long way.

SPEAKER_04: 4:20

Absolutely. And I have to agree. Um, we have uh a plethora of uh experience from different angles in this room today. Um, so Kristen Jones, that being said, tell us about yourself.

SPEAKER_01: 4:36

Oh, well, you know, what can I say?

SPEAKER_04: 4:38

And you get you get a little bit of longer time because you've never been on the podcast before, and the folks out there want to know who the hell Kristen Jones is.

SPEAKER_01: 4:47

Do they?

SPEAKER_04: 4:48

Yes, yeah, they do. Go for it.

SPEAKER_01: 4:50

So, fun fact, I was a nurse before diving into the real estate and insurance market. So I feel like that gives me kind of a little bit of an edge um on the sympathy factor when it comes to real estate and insurance. Um, when Marcus called me one morning last week, he's like, Hey, be on the podcast. And I was like, No. Um, and then he said, Yeah, that's what Mark said you'd say. And I was like, Oh, okay, well, then now I have to. Um, so now been in insurance in real estate for gosh, six years.

SPEAKER_04: 5:19

Just like that.

SPEAKER_01: 5:20

Um, it flies by fast. And I'm getting the same thing that Tom is talking about about home buyers and clients of mine that have no idea what insurance means, no idea what their coverages cover. I get the question all the time, so what does this like do for me? You know, and how much am I paying? And what are my deductibles? And they just they have no idea. And I can explain it to them two, three, four times, but it doesn't really stick um until they're in it. So I feel like this, and especially now with the roofing climate that we're in and everybody and the storms and the pricing of insurance has increased substantially. Um, it's good to educate them, to let them know, you know, hey, this is what it does, this is what it covers, and how can we help you, you know, find the best coverage for you?

SPEAKER_04: 6:06

Well, let's get some of the basics out of the way before we jump into a uh more nuanced conversation and and to kick that off. The idea of insurance and the customer understanding it came out of all three of you guys' mouths. And I want to kick around ideas on why we think that is. Are they just not paying attention? Um, does their mortgage lender or realtor take care of their insurance up front so they really don't have a say in it to a certain extent, or they believe they don't have a say in it? Um are they just uneducated in that subject matter? I mean, what what are you guys' thoughts on that? Why do you think that it is so um how do I say it? It is so neglected.

SPEAKER_00: 6:56

Sure. Yeah, I think it's a combination of both. Um, you know, especially coming from the real estate side, and a lot of times customers are very tight on their debt to income ratio. Very good point. And so you have the loan officer trying to get the loan done. Obviously, they want to get approved. They go to an insurance agent. The insurance agent probably quotes out a certain policy, it kicks back in your system. Now we're over. And sometimes those adjustments might be made where deductibles are higher, and maybe the coverage isn't quite what they need. And really, what they're putting in place is a policy more for the lender than the consumer. Right. Is the lender protected? Boom. This is the bare minimum. Yep. So let's issue that policy. And I think it takes somebody with sympathy and empathy to maybe follow up with those folks after the fact yes, the house is important, but now that we've done that and we've closed, let's revisit this insurance conversation to really get you coverage that that you want, need, and understand. And I think a lot of people just, you know, they'll buy a property, somebody gives them an insurance referral, and they never think about it until they need to. And that's where the issue is. And we see that almost every conversation with everybody. People don't even know what their deductible is. Uh, they don't know what the coverages are, they don't know what the exclusions are. And that's why we wanted to talk to Kristen as well, because being an insurance agent, obviously she can work with many different companies because some companies are just setting the 3% minimum, no matter what. There is no other policy, or or we're not gonna have um coverage for metal roofs on cosmetic. And so they're making these decisions where you can't even get a policy maybe that you want. So if you're shopping with that particular company, then you might think that's just how the insurance industry is. Right. Instead of working with a broker where a broker can say, well, if that's important to you, then let's shop some other companies and get you the coverage you really need.

SPEAKER_04: 8:44

I think you hit it on the head there. Um, you raise a good point that brings up a good joke, which um I think it was maybe Chris Rock that said it a while back. You don't really pay attention to your insurance, uh, and he called it something else that I'll delve into here short momentarily. But the the idea is you don't necessarily check your insurance, what you're covered, how much it covers until shit happens. So he calls it in case shit. The idea is you don't have insurance and until something happens, and then anywho. Um so that being said, I would like to shift it back to Kristen in the sense of just basically explaining the difference between, let's say, a broker and an online insurance company. Because even if the customer, to to add to your point, Marcus, if the customer is picking their own insurance, shopping for it themselves, let's say the online form that they go through is pick your option, pick your option. And by the time they're done, it's been five minutes. And have they really gone through it? Any of that? Do they understand it? Um, and I'm thinking that that too could be uh an issue with why they don't understand insurance and also a reason why they should maybe use a broker. But if you could tell us the difference, for sure.

SPEAKER_01: 10:10

So they're gonna make it complicated. It there's no easy way around it. Now, I think people know a lot more about their auto insurance than they do about their homeowner's insurance because they're having to deal with it constantly. And, you know, it it is very cut and dry. You need this, this, this to drive, period. There you go. With your homeowners, there's so many different caveats that you can have on there that they just really don't know what they're picking. They're just going for the cheapest rate. And for instance, as a broker, I can shop, you know, 20 different companies all at one time, try to save them money versus them going online doing 20 different companies, but it's taking them 20 minutes each company because they can't shop them all at the same time. It's it's all separate. So then when they're doing that, then they get frustrated and they're just like, well, I'm just gonna pick this one, and they have no idea what they picked. Um, so they also a question that I get a lot is is it more expensive to use me like a broker versus going online and doing it themselves? And usually it's not. Most of the times I can save them money with discounts, with bundling, with all kinds of other options. So even if they are maybe saving 5% on the front end, by the end of it, I've saved them that plus some. And then most of the time, my insurance clients have my cell phone in their back pocket anyway. Mark knows. They call me all the time or text me all the time. Hey, what is this? Or what's going on? Or uh shingles just flew off of my roof. What are you doing? Shingles of shingles. I'm like, call Marcus. Yeah. Um, so yeah, I mean, for me, it it just makes sense to use a broker, although I know some people like to do it themselves, and that's fine. And a lot of times I can compare it. I'm like, hey, if you're gonna shop it yourself, at least send it to me so I can see that you're picking the right things. And even if you don't use me, it's okay because maybe down the line you will. But um, yeah, I I feel like using a broker is just, you know, kind of like using a travel agent. Like you're not paying for it up front, but they're saving you all the money.

SPEAKER_04: 11:59

Sure, that's a great point. I mean, the the idea that I that comes to mind for me in well, is it more expensive? Well, no, they're gonna shop your insurance to find the best one according to what your needs are, but at the same time, when something does happen, when that shit happens, you're going to need to have somebody that advises you on the process because if you mess up one step in that process, that could determine them covering it or not. Um, and I don't know if people understand the gravity of that uh concept. I mean, you got your AC goes out, you got flooded basement, you got all of these things that could go wrong, electrical. Um, one little caveat that leads to not being paid out that$25,000 to$50,000 for that incident could leave you uh broke completely and homeless.

SPEAKER_00: 12:52

Yeah, for sure. Yeah, and I think there's two good points when when Kristen was talking, I was thinking about, and I'll let Tom talk about when we were in Kerrville, um, you know, with this with this most recent storm. But I think a lot of people really focus on their auto insurance because you're paying it every month. You're paying attention and you see it goes up 50 bucks, and now you're making calls. Whereas a lot of people, their their homeowner's insurance is in their escrow. Yeah. So they just get a notification every year, hey, we disperse this and and they're not really paying attention. So once they set up that original policy, I think it's forgotten about. People don't think about it until, like you said, shit happens. Yeah. And with auto, people are always paying attention to that, probably calling you all the time trying to change auto and in their rates. Um, so I think that's that's an important part of it. And then Tom can talk about this because when we were in Kerrville and we had that big storm, you know, he could be on the phone for an hour and a half trying to talk to an insurance company on behalf of a homeowner. But when he picks up the phone, you had a bunch of agents on speed dial, and we were literally getting questions answered on the spot, right?

SPEAKER_02: 13:56

Yes. So I find that a lot of folks just don't realize what their coverages entail.

SPEAKER_04: 14:02

Right.

SPEAKER_02: 14:02

And you you you hit the nail on the head, Mark, with the Chris Rock thing. So um most people don't become aware until it's too late. And that's kind of the point of this. We want to we want to educate folks on being a little proactive and making sure that they know what they've got, what they are planning for in the uh I'm not gonna say unlikely event, the horrible event that something happens and they're not covered. Right. And we've seen this. So I think the biggest thing is just making sure that you talk, you ask questions from your agents, brokers, whoever it is, because I've spent so much time over the last six months just on hold, trying to get through to the bigger companies, trying to get through for folks who just need answers. And unfortunately, what they tell some folks they want at times, that's not what they have when the rubber meets the road. Right, right is the best way to say. Uh, some people don't realize that a simple$50 a month could replace their roof in the long run. And the reality is, I mean, shingle roofs in Texas, I know they are 30 years, uh, is what they say on the warrant. Yeah. Thank you, Kristen. I concur, and nobody concurs anymore. Um they don't last 30 years here in Texas.

SPEAKER_04: 15:19

Right.

SPEAKER_02: 15:20

So even metal roofs, I mean, my house, my roof was nine months old. We had this hail storm in March. And I mean, when I say hail storm, I tell folks all the time a uh a big hail storm is typically about 12 minutes. Ours was 45 minutes straight of tennis ball size hail.

SPEAKER_04: 15:35

Yeah, have you heard of Purville size hail?

SPEAKER_02: 15:37

Yeah, purville size hail is a good way to put it at this point. So again, I just my hope is that most homeowners, if they see this, they're gonna call, they're gonna get information, they're gonna figure out hey, what is my deductible? What are my coverages? If it does hit the fan, where do I go next?

SPEAKER_04: 15:53

Yeah. No, that makes good sense. Um, and before we shift over to the predominantly roofing conversation, I want to ask you both, uh, being in roofing now, um is it easier dealing with an insurance broker when you have claim issues, or is it uh easier dealing with the big names directly, like your uh progressive, your state farm, that concept, or is it dependent on the agent you get?

SPEAKER_02: 16:24

Ooh, I'll take this.

SPEAKER_04: 16:25

Go ahead.

SPEAKER_02: 16:26

So I have I have a lot of relationships, obviously. I know several insurance brokers. Chris and I've used for years as well. Uh I've also got some agents that I have on speed dial, and they are amazing because we're a small town out in Kerrville. Right. So the couple that I go to out there are amazing. I don't have a preference per se, but typically typically, if somebody has a state farm question, I will ask them, but then I will also go and ask somebody else, like Kristen, hey, what are the other insurance companies saying like this? And that's why it helps you to have these folks on speed dial.

SPEAKER_04: 16:57

And that's your trust validator. You you've got to have someone to be able to validate based on their experience and their access, uh, if this person is doing their their shit right, to be honest. Um, and I think every professional should have a trust but verify person, if that makes sense. Sure. Um, and an insurance broker is a great uh person to be that for for you guys' situation. Um, so as we jump into more of a uh over-the-top kind of conversation, uh, and when I mean that I mean roofs, the idea that was lame with you, Mark.

SPEAKER_00: 17:37

We got you covered. Is that better?

SPEAKER_04: 17:41

That's a lot better, yes. Um what made you guys decide to get into roofing? And I know you mentioned that you got into roofing. What what what was the what was the real driver of that? Because you are a high-producing realtor, the idea and essentially shared broker, the idea behind it is yeah, I can make extra money doing it this way, or I can create another legacy uh going this route. I have set things up on autopilot, and I mean, there's so many different things. Um, and the reason I ask this is shit, I go through it as well. It's like I'm a producing branch manager that owns a lead generation company that decides to start a mobile app, and she's like, What the hell are you doing? Yes, and now fast forward five years and it's whoa, okay. Um, but you never know when you set out on things like that.

SPEAKER_05: 18:39

Right.

SPEAKER_04: 18:40

Um, shit could hit the fan. All of the things, what what allowed you guys to take that leap?

SPEAKER_00: 18:47

Sure. Well, you know, Tom and I had this conversation years ago. Um, and he wound up going into different direction. He stayed in the industry. Um, but you know, I think Tom and I, and we've known each other for 40 years, have been best friends since we were 10 years old. And so it was one, the opportunity to work with him. Um, a lot of people can't do that. Yeah, I can. Yep. Uh but one was was the opportunity for us to build something together, um, legacy for the family type. But you know, even in real estate, being super busy, there's always some time. Yeah. You can always carve out some time, right? You're you're technically in charge of your own schedule if you manage your business correctly. So there's always a little, a little extra time. And you know, Tom really had that that expertise when it came to um, you know, the product and and uh roofing and and and solar in general. And you know, I was very familiar with building a business. You know, we put Andy and I built that brokerage together and and uh with Shannon's help as well. And it was one of those things where, you know, really you've got kind of the sales and then the operations side of a business, and both of us are are obviously salespeople, so we're really a sales organization and understand that. But when it comes to the operation side, and there's so much, and you would know to building a business, there's insurance and there's LLCs and there's attorneys. There's things that the people do not see. That's right. And so a lot goes into it. And so we we worked really hard building this business, and it just gives us the opportunity to work together and and um try to deliver a different product than what's currently being delivered. Um, one of the first things Tom does with everybody is ask them for a copy of their policy, and he's gonna review their policy before we even talk about replacements or anything else. Let's see what your coverage is, let's see if this is a good decision for you. And every now and then we meet somebody where it isn't a good decision for them, but then he's coaching them on look, you've got a 4% deductible and you have exclusions, and basically this policy covers just about nothing. Right. And let's let's rethink that and talk to a broker, an insurance agent to get you lined up and get you protected like you should be. Yeah, and that's typically the first conversation he has with every client.

SPEAKER_04: 20:56

What are your thoughts? What we're we're where you're like, you know what? Screw retirement, let's go.

SPEAKER_02: 21:02

Yeah, so I I have different motivating factors for me. Yeah. Mine, obviously, legacy. Uh I think everybody knows I just I keep having kids. So uh, you know, I I would love to have a little legacy for my children to come back to at some point. I would also say that different than most insurance companies, we are looking to protect our team. So there are very few insurance companies out there who have W-2 on their roofing companies. Roofing companies out there that have W-2 employees. Yeah. And that's all we're doing. Uh, we want to make sure they're covered in the event, God forbid, something happens.

SPEAKER_05: 21:43

Yeah.

SPEAKER_02: 21:43

So I don't want to see somebody get hung out to dry. I don't want to see somebody stuck with$100,000,$150,000 in medical bills. It happens. So, you know, in those situations, this is the bigger thing for me.

SPEAKER_04: 21:54

And we've we've seen many friends that have had roofing companies over the years. So you've seen the good, the bad, and the ugly, and what not to do, what to do, how you're gonna do it this time. Um, and that's that's a pretty cool uh concept. Can you tell us uh a couple of things before you set out that you said, you know what, I'm not going to do this?

SPEAKER_00: 22:18

Tom just mentioned it. The biggest thing, and him and I talked about this for years, and you know, we we know each other very well, obviously. So we'd always bounce scenarios. I'm struggling in real estate, he gives me advice, vice versa. And you know, when I was digging into this roofing business, because I'm a sponge, when I dove when I jump into something, like I'm absorbing everything, like a toddler, and I'm asking him all these questions, and I just can't understand why. Essentially, with a lot of roofing companies, you have an owner, and then most of the other people are all 1099. And so now, don't get me wrong, you have a salesperson that's super successful, they want an LLC, there's tax advantages, etc. Right, that's fine. But what happens is you need to make sure that you're a responsible owner and make sure that they are providing the correct insurance for themselves if they're not going to be covered under yours. Right. And roofing is is is dangerous, you know, even for our sales folks that are doing inspections. You never know when when something could happen. And, you know, there's no disability insurance, there's no workers' comp insurance, there's no health insurance, there's no benefits, right? And so that was the very first thing that we above everything, that was the first thing we talked about because we love to create jobs. Yeah, it's not just about, hey, we got that roofing project, we see six guys or girls that are there working, and and they got a job today because we were able to create those jobs. And we're doing the same thing with our admin and and our operations and our sales folks. We want to make sure they're covered.

SPEAKER_06: 23:48

Yeah.

SPEAKER_00: 23:48

And so that was the number one thing we talked about is yes, there's gonna be a lot more expense to us, but we want to have the liability so that our folks can go out there, earn a living, support their family, but do it in a safe way. Yeah, and so that was the biggest thing, probably we talked about, right, Tom?

SPEAKER_02: 24:05

Not probably, it's 100%. Like, I can't even tell you guys. Like the fact that we know when we send somebody out, God forbid it's just that one day, you know, there's a saying in roofing you've either fallen off a roof or you haven't fallen off a roof yet. So it's gonna happen at some point if you do it long enough.

SPEAKER_06: 24:23

Yeah.

SPEAKER_02: 24:23

So the reality is just we can lay our heads down at night knowing that they are protected, god forbid something does happen.

SPEAKER_04: 24:31

Well, that's starting with uh something else that typically insurance does cover it, which is a good foundation, right? Um that that being that didn't not land.

SPEAKER_01: 24:42

Um literally land.

SPEAKER_04: 24:46

Yeah, it landed on its face.

SPEAKER_01: 24:48

Only if you add it on your policy today. That's right. So it's excluded. I'm like, it's excluded.

SPEAKER_04: 24:54

So what I'd like to do is take the folks through those that own a home, those that are looking to buy a home, etc. I'd like to take them through the the process or the journey, let's say, of from the time you think you need a new roof, what what are you what are your signs that you're looking for all the way through insurance, now repairs, now that journey all the way through? What is that supposed to look like? Because there's plenty of folks out there that either have gone through that process and can validate or verify this one or you guys' process, or there's people plenty that have never had to have this happen. And when it does occur, they know how it should look. Uh, and I think that's something that, for example, the mortgage industry, nobody talks about the mortgage process start to finish. They always give you the upfront and the joy of the uh uh getting pre-approved and then the closing, nothing in between. Um, so yeah, that that being said, what are some things that me as a homeowner, future homeowner, home buyer, am I looking for on a roof that would make me go, hmm, maybe I need a new roof?

SPEAKER_00: 26:11

Sure. Well, I'd start if there's shingles in the yard, right? We get those calls. Hey, there's a shingle in my yard.

SPEAKER_01: 26:18

Just one, and I'm like, there's more.

SPEAKER_00: 26:20

There's more. And and and a lot of times they've lifted up, maybe they haven't released yet, right? Um, but we try to do a very good job of, you know, the first time we contact, Tom reviews the policy, makes sure that we've got the coverage. Um, but we go through the entire process up front. We let them know what the expectations are. Um, you know, we do the inspection, we show the damage, we offer to partner with them. Um, we have a third-party release that they can sign that allows us to talk to their insurance on their behalf.

SPEAKER_03: 26:46

Right.

SPEAKER_00: 26:47

Um, because let's face it, when the insurance sends the estimate, typically it's gonna be lower than what's actually needed. Almost always. And you don't even know, right, Kristen, you get up there and then all the all of a sudden you find out there's six pieces of rotted decking that we did not know until we uncovered it. Right. And those are things where, you know, if you're gonna work with a roofing company, I would say make sure that they're they're experienced in working with insurance because ultimately, if insurance isn't covering those additional supplemental issues, then you are. You're under contract with a roofing company, and if there are incurred costs, you are responsible for them. And so we try to run through all those and and explain the entire process from the time that we first meet them all the way till the project's 100% complete. And so we put them through all of those steps so they know.

SPEAKER_04: 27:33

So I want to kick it over to Kristen for a second because Marcus mentioned something about that initial call and finding out that, oh shoot, I actually need a little bit more money. And then lo and behold, that more money is released. What, what, what is it that they're experiencing? What why do they initially not give you enough for whatever it is? Does that make sense?

SPEAKER_01: 27:58

Yeah, yeah. I I I like to say I have a love-hate relationship with insurance because I do love it, but I hate it at the same time. Um, so what they're going to do is try any way that they can not to pay you. I mean, it just it it is what it is. So whenever you have a policy, and how many times have you asked a homeowner, hey, let me see your insurance policy? And they're like, Well, I don't even know where to look. Where is that? I don't even know who it's with. Like, I don't even know the company.

SPEAKER_00: 28:24

You're right.

SPEAKER_01: 28:24

All the time. I guarantee it. Um, so most of the time, an insurance company will start out. So a homeowner will call and say, Hey, we just had a hail storm. I think I need to replace my roof. Well, then they'll call and they'll make a claim with their insurance company. When they pay out, they usually will only give you actual cash value first instead of giving you the entire amount that it's gonna cost to replace your roof. Then they're gonna ask for proof that you've actually done all of the repairs. So used to before, I don't know, let's just say 10, 15 years ago and have done the research because I haven't been in the business for that long, but I hear it all the time from customers. I replaced my roof, they gave me 20 grand and it only costs 10. So I got to keep 10. And I'm like, don't tell me that. That sounds awful.

SPEAKER_05: 29:07

Yeah.

SPEAKER_01: 29:07

But they used to do that because it it just was easier back then. And now with all of these storms and all of that, our risk, especially here in South Texas, is just increased substantially. So now what they're doing, because our risk is so high, is they will only give you basically what you need to replace it at actual cost value, which means what it is minus depreciation. So let's say if your roof is 10 years old, they're gonna give you the money for a 10-year-old roof, not a brand new roof.

SPEAKER_05: 29:37

Right.

SPEAKER_01: 29:38

Then you replace it, and then you have to submit photos and submit evidence that you've actually done the work, and then they'll give you the rest. So that's kind of how it starts. Um, most of the time, it's just a phone call from a homeowner going, Hey, what do I do? And then that's where you guys come in.

SPEAKER_02: 29:56

I'd also like to point out that over the last year or so, they have Also started asking for the deductible check so that they can see homeowners are paying it.

SPEAKER_05: 30:05

Okay.

SPEAKER_02: 30:05

They will not release a depreciation. Um, just to elaborate a little bit more on Kristen's comment, I think homeowners really don't understand the difference between RCV and ACV policies. For sure. I think that is a huge thing.

SPEAKER_04: 30:21

Let's talk about that. I mean, that's a good point. Go for it. Whoever knows, because homeowner. Oh no fucking, no clue.

SPEAKER_01: 30:28

I'm gonna I'm gonna pick the professional. I guarantee Mark does not know if we have guarantee.

SPEAKER_04: 30:35

You win.

SPEAKER_01: 30:36

Um but what it is is is replacement cost value versus actual value. So oh oh hi. Um so what it is is you're replacing your roof for the actual cost that it costs to replace it at full value minus depreciation. So replacement cost is that full amount versus actual cash value, which is the amount minus the depreciation. So five-year-old roof, 10-year-old roof, you know, whatever the case may be, they're gonna give you that. Now, if you only have an actual like ACV on your roof, actual cash value, they're gonna give you the least amount of money that they can for your roof. They're not gonna give you what it would be to actually replace it brand new, they're gonna give you less. Now, it used to be you could get, you know, replacement cost value on a 20-year-old roof, like we were talking about earlier, but now it's gone down to where they'll only give you replacement cost value if your roof is 10 years old or less. Some companies, five years old or less. So most of the time, if you have a roof that hasn't been replaced in 10 years, you have actual cash value on your policy and you don't even know. So the difference is how much they're gonna actually pay out when you do have to replace your roof.

SPEAKER_04: 31:49

Yeah, that's super important. Super important. Go for it.

SPEAKER_02: 31:52

So just to elaborate a little further on that, so to simplify it, because this is what I do when I'm talking to homeowners all the time. If you have an ACV policy, and let's say you have a 30-year shingle architectural, and with that 30-year architectural, it's 15 years in. So if it was 30,000 to replace that roof, you are only getting$15,000 all in if you replace your roof, which is not enough to replace your roof in today's world. Right. So with our CV, that's the replacement cost value. What it does is for that 30,000, they may say, hey, you are 15 years in, but we're gonna withhold 15,000 of this until we know you actually replace your roof. And that's usually only if you are grandfathered in on a policy where they didn't change it based off of the 10 years. So keep that in mind when you are looking at policies. If anybody mentions an ACV policy to you, my suggestion is to tucktail and run as fast as you can, because this is going to hit your uh piggy bank in a major, major way.

SPEAKER_04: 32:52

Well, I mean, it's so much so that it we're dedicating an entire episode discussion uh surrounded by it. I I think that it is um very much misrepresented on the gravity that it could cause if something happens. I mean, uh the roof, the thing that protects the rest of your home. Uh if something is not protected, you've got to come out of pocket for it. And that's I mean, I'd like to look up here in a bit how many people have gone through bankruptcies, have gone through foreclosures because they didn't have enough coverage and something happened. Um but anywho, so going through that process, what customer comes to you and they have you guys look at their insurance policy, they have you look at the damages or what they think or believe is damages. What are they looking at? Range, and I know it's tough to give a price range, but the idea of I just need to replace some shingles all the way to I need a new roof, and that roof is a 30-year shingle or a 30-year uh uh metal or what have you. Take me through that because I have zero understanding of how much a roof is to cost.

SPEAKER_00: 34:07

Sure. Um, a lot more than what you think. I I would imagine so. A lot more than what you think. We we have one that we're doing in Bandera.

SPEAKER_04: 34:14

Worst case scenario, we pull that roof off the top of that house, we sell the metal.

SPEAKER_00: 34:17

Yeah, so this is a good example of knowing what your policy is. Um, we have one we're doing, uh it's gonna be standing seam in in uh metal roof in in Bandera, and he his policy shows that he currently has a three-tab shingle on his roof. It's a 40-year shingle, it's not a three-tab. It's you know, it now he paid$2,500 for the entire roofing system back then. So it was a long time ago. Wow. But that is probably yeah, it lasted 24 years. Um uh, but that that's probably a$30,000,$35,000 roof today. Um, you know, for you know, for that size home for the shingle. And um, you know, if you're doing metal, you know, that could be anywhere from$50,000 to$100,000 and even more depending on the size of your house. Oh wow. So it's it's pretty substantial. I can give you an example on mine. Um, and this is why, you know, it's good to work with an insurance company because the individual I talked about, we had the receipt, it showed 40-year shingle. And now instead of insurance paying for a three tab, which is entry level, very inexpensive, we were able to supplement that and get him what he's supposed to get. Now, if he doesn't have somebody inspect and just files a claim blindly and gets a check, now he's taking that lower amount and trying to shop, sorry, to find a roofer. And at that point, it's a race to the bottom because not only is he compensated probably half of what he should have, now he's trying to price out something that clearly you'd have to leave something out in order to get the price that low.

SPEAKER_05: 35:50

Yeah.

SPEAKER_00: 35:50

Um, on my roof, it started out$42,000 and it was 63 at the end. Right. So without those supplements, and I have a metal roof, so there's a lot, a lot that goes into it, right? Yeah. Um, they forget exterior buildings all the time. We've got one right now where we're going back and we're having to say, hey, you forgot this entire building that is on the policy, you know, 1,500 square foot building. I don't know how you missed it, but you did. But because we're able to help and and represent, we're making sure that they get everything covered according to the policy that Tom's reviewed to make sure that you know everything is covered. Right. But as far as pricing, I mean, that could be anywhere from$8,000 to$150, just depending on the size and the material and everything else. But it's it's very expensive. The days of two, three, four, five thousand dollar roofs are are way gone, way gone.

SPEAKER_04: 36:38

So that that kind of sparks a question, random question, but the idea of if I'm picking a more substantial, more robust, more longer lasting, more durable roof, would that then not correlate to a much cheaper policy on the insurance side? Or is that not really doing the same because you're now insuring something that is worth more?

SPEAKER_01: 37:05

It's brand new, right? So it depends. Um yes, you would think that if you got a brand new sparkly, shiny roof, metal, you know, shingle, whatever, that it would drop your policy down because you're not insuring a super old roof. But honestly, right now in the insurance market that we're in, the cost is not that much different. Um I mean, yes, they are insuring it. Yes, you can probably get replacement cost value, which already will increase your policy. That's why a lot of people go with actual cash value, to be honest, is because their policy is cheaper with an actual cash value roof because they're having to pay out less.

SPEAKER_05: 37:40

Sure.

SPEAKER_01: 37:41

Um, and everybody's looking for cheaper, better right now, right? So high deductibles, actual cash value. Um, but if you're replacing your roof um and it's brand new, yes, it will decrease your policy for the most part, usually, but it's not gonna be like this huge substantial amount that people are thinking, oh my God, I'm gonna be saving a thousand dollars a year. That's that's not the case.

SPEAKER_04: 38:04

Which now leads me to, and I I figured that was going to be the case, didn't know, but leads me to my next question, which is what are you guys advising customers in regards to them knowing this information? Because they got with a good insurance broker, they asked the right questions. Insurance broker says, you know what, you can put a hundred thousand dollar roof or you can put a fifty thousand dollar roof. Either way, your insurance is gonna be high. It is what it is.

SPEAKER_00: 38:32

Sure.

SPEAKER_04: 38:33

What do you say to an individual that says, you know what, put the bare minimum versus upgrading it to XYZ and then parlaying that to why do people choose metal over shingle, sometimes requirement by neighborhood, et cetera? But if you had to pick, why and what are the benefits, if that makes sense? Sure.

SPEAKER_00: 38:55

I mean I mean, ultimately, we're gonna we're here to serve the consumer. And you know, if that's if that's what they're looking for, we're gonna make those offers. But even on, let's say, just a basic three-tab roof, we're always offering um a 30-year shingle as an option. Now, if their policy is covering$15,000 and it's a$1,500 difference, maybe to do the upgrade, obviously we're passing that on to them and giving them that option. But they have that opportunity to do so. And so we're not just up there throwing on whatever it is, the cheapest materials. You know, typically we want to offer the quality and give them the option. But ultimately, if they don't want to do that, we're we're gonna provide what they're looking for. Um, and then on the discounts, you know, sometimes if it's a class three or class four, you know, we can get the paperwork to the insurance agent. You get a little bit of discount for that, a little bit of discount for new roof. Um, but ultimately, you know, you're still paying a deductible every time you have a claim. So you might say, oh, well, let's just go with the cheapest, right? And try to try to save a little bit of money. But ultimately, you know, between going with the very base, base, base and getting something that's maybe a class three or class four impact, maybe you're not having to file during the next hail storm because that shingle held up a lot better. And if your deductible is five grand, essentially that's five grand that you're not spending for the deductible two, three, four years from now when we get that big storm because you wanted to go with the least expensive product that quite frankly isn't gonna hold up as much as, say, a class three or class four impact shingle, right? Um, and then the same thing goes, you know, for metal and metal exclusions, right? A lot of people are some companies are a hundred percent metal exclusions, meaning no cosmetic damage. Unless we get up there and find a lot of seam and structural damage, they're just not gonna replace it. It could look like somebody walked around with a baseball bat on it, they're calling it cosmetic.

SPEAKER_01: 40:53

Well, because it's still functional to them, right? Correct, even though it looks awful. And there's no holes, yes, and there's no holes. So technically it still works today, right?

SPEAKER_00: 41:02

But then as that water pulls up and it starts to rust, and we see those years down the road, right? And take my house, it's not very big and a$63,000 claim. You know, you got a couple of buildings or or a larger home, you know, it's it's you got to put the pen to paper with your agent and really understand the break-even um when it comes to a metal exclusion or the different types of policies or different deductibles. And I think that if people would pay attention to homeowners' insurance, like they do car insurance, you can ask most people what's your deductible on the cars and they'll say it's 500, it's a thousand. They know right away, right? They know how to file the claim, they know how to take care of it. I think because it gets lost, they buy the house and it just gets lost in escrow. Most people got to call their mortgage company to find out who their insurance company is. Who are you paying it to? And then they're kind of reverse engineering to find their insurance company, right? And I think if more people could just pay a little bit more attention and really understand, then you know, if I show up to your house and you have a$30,000 deductible, I'm it doesn't bother me a bit. You chose that, you've been saving for five years on your policy, right? So your responsibility is thirty thousand dollars.

SPEAKER_01: 42:13

Makes sense, right?

SPEAKER_00: 42:14

Press hard three copies. That's right. So you're present. We're adults, right? We're adults. And so now could it be that, yeah, you just kind of jammed in first-time buyer or lender or realtor says, Hey, use this company and you never paid attention. It's it's an unfortunate fact that that could happen, right? Um, or you know, your uncle sells insurance or whatever the case may be. But I think just if people could just take a minute and, you know, if if they get nothing out of this today, pull your policy and review it. Absolutely. If you have questions, call your agent. If you don't have an agent, find one.

SPEAKER_01: 42:46

Yeah, I know one.

SPEAKER_00: 42:47

Yeah, most definitely. Kristen knows one. Totally, right? And so it's like you said, you don't need it until you do. And the time, you know, it's like life insurance, same thing, right? Life insurance, auto insurance. We we have these insurances now. If you're wealthy enough to self-insure, great. Good for you. Press hard three copies. Yeah, right. We're we're still gonna take care of it either way. But I think if if people take nothing away, just review your policy, make sure you understand your coverages, and that way when it happens, because it will, right? We get storms all the time. Yeah. Um, you're not stuck where maybe you know you've got those leaks because we haven't even talked about leaks yet. But you know, we can say, yeah, there's no structural damage, but when your you know your ridge vent is completely blown out and you're leaking, now we have interior damage. Well, let's talk about leaks.

SPEAKER_04: 43:33

So now we're talking about I've got one more off-the-wall topic, but we can talk about it right after this. What what do you got to talk about leaks?

SPEAKER_00: 43:39

Well, see, that's the thing is um, you know, if you if you don't first of all, you should probably get somebody up there every couple of years just to take a look at it. You got to resill expose nail heads and and other things that can cause leaks, right?

SPEAKER_04: 43:49

You've got now you saying that question that can help our listeners when you mention inspection, get up somebody, get up there, have somebody look at it. Are you talking about a home inspector or get a roofing company to come and look at it? And the reason why I ask is we deal with a lot of septic home buyer home buyers that have septic tanks. Every time you send a septic company out to do an inspection, guess what they gotta do? Pump it. They gotta pump it. Yeah, it's like, wait a minute, it's two years old. Nope, we got to pump it before we inspect it. Well, you just got an extra fee for doing what we probably knew was gonna be the case. Sure. Um, what would you recommend in that case?

SPEAKER_00: 44:30

Well, I would think either. And I can tell you, you know, being in real estate, home inspectors serve a very uh important role, right? But but let's face it, typically when home inspectors come across something, they make a recommendation, but they always say contract certified electrician, a plumber, a roofer, right? So eventually that may come. But um, I I'd say really you can do either or. Now, a lot of people are probably listening to this going, yeah, I'm gonna call a roofer to tell me if there's damage if I need to.

SPEAKER_01: 44:56

Because they're gonna tell me that I'm gonna need a new roof, of course. Regardless, yeah, right. It's the same as calling anybody else.

SPEAKER_00: 45:01

Yeah, I mean ultimately, but that's that's why this is a relationship business, right? And so, you know, we we we do quite a few inspections for folks, and the and the favorite, and Tom says it all the time my favorite thing to do is to come down off of a roof and tell you you have no damage.

SPEAKER_03: 45:15

Yeah.

SPEAKER_00: 45:16

Have no damage. We're in this for the long haul, right? Just just like a real estate career, and he's been doing this for a long time as well. We're we're building relationships and referrals. And so it's about taking care of people. And and when we can get down off a roof or it's a quick, easy fix, 200 bucks, you know, get it sealed up and everything's fine, that that's what we're looking for. But if you don't pay attention and and let's say you keep that insurance check on this very severe storm and you say, Oh, I'll just do it in a couple of years, money's tight right now. Yeah, when you start getting those leaks and interior damage, that is not going to be covered. And so now you have this extensive interior damage, you're ripping out sheetrock and drywall, and you know, depending on how long it's been sitting there. And a lot of times you don't know until it's too late.

SPEAKER_06: 45:58

Yeah.

SPEAKER_00: 45:58

You know, you don't see that leak coming through. It's hiding water finds a way, it goes around and then it finds a way, and then eventually it's exposed. Oh, yeah. And so it's important that you know you you protect your investment just like you would your automobile. You know, if your windshield was completely blown out, you wouldn't drive around in the rain with it.

SPEAKER_04: 46:14

You could get a new car, yeah. You get a new car, yeah.

SPEAKER_00: 46:17

You get a new windshield, right?

SPEAKER_01: 46:18

Get a new car.

SPEAKER_00: 46:19

You just get a new windshield oil change.

SPEAKER_01: 46:21

So uh new car.

SPEAKER_00: 46:23

Yeah, you know, it's it's about education, it's about uh relationships, really. Go for it.

SPEAKER_02: 46:27

Yeah, I'd also like to throw in that a lot of folks go to their insurance company first. Hey, uh, we have hail. Do you want to come out and inspect that?

SPEAKER_04: 46:36

That's definitely what you should not do.

SPEAKER_02: 46:38

Yeah, that no, that that is a great, great idea if you just want to get told no. Okay, seriously. Like, here's the thing they're protecting their investment. I will also say that most roofing companies will come out and do that inspection for free. We will absolutely do that. So it doesn't matter what the cause, you should have a roofing company that will come out and inspect your roof. And it shouldn't cost you a dime. Again, the reality is uh honorable roofing company, somebody with integrity, is gonna tell you again, my favorite thing in the world, your roof's fine. We'll be out in a year to check it for you again. Again, we're building relationships. This should not be a quick buck deal for people, it should be a long-term plan. Yeah, unfortunately, roofing companies go out of business so often that you just don't know.

SPEAKER_04: 47:21

Well, and and the reason for that is the the descriptive word that you used. I was gonna use it a bit ago when Marcus was talking, and it's integrity. Um, I think integrity is one thing that is missing from that profession, or is hard to find, I should say, in that profession. And you guys starting your business off, taking care of the employees first, um, says one thing about it. And then the fact that you're doing the free inspection says even bigger thing about it. Um, but the idea of integrity in roofing, because you don't have to have a degree to own a roofing company, you don't have to have uh certain things you know, of course, you've got to have insurance. We all have to have insurance, but I wanted to shift over the last kind of topic of discussion.

SPEAKER_01: 48:03

Um before we shift, yeah, go for it. Absolutely. Um, whenever we were saying, do you call your roofing company to come out and check it? A lot of people um a lot of people will call their insurance company first before they call a roofer because they want to see. So they're like, oh, well, let's just check and find out if my roof actually needs it. The problem with that is is that whenever you call your insurance company and they're asking, okay, sure, we'll send an adjuster out. Then they go and they find out, okay, well, maybe you don't need a roof replacement. That still dings you on your claims history, which is going to increase your policy later on. So it's it's so much better to, hey, Marcus, I don't know really if I need my roof replaced. Can you come out and check it first before you file a claim? It's not like asking for forgiveness later. They're going to ding you on it, even if they don't pay you out anything, even if they come out and say, hey, you know what? I you don't need it right now. It's still gonna show up on your claims history. So when you're trying to shop for another insurance company later down the road, because you want replacement cost value versus actual cash, or because you talked to your agent and we're trying to find you a better policy, I'm gonna go, well, man, you had a claim last year. And they're like, no, I didn't. And I'm like, no, you did. It's showing on here, even if they didn't pay it out. So it's always best, always, always, I always recommend to ask your a good, solid roofing company, you guys included, to check your roof before you try to file a claim so they can tell you straight up if you need to do it or not.

unknown: 49:34

Perfect.

SPEAKER_04: 49:35

Well said, well said. So that leads me to my last uh uh fun topic. Um, talking about integrity, talking about damages, things of that nature. And and I I was gonna look it up and I still will, but I want to get your thoughts, all of you, on the idea of solar. Um, I know long-term, great solution, but we're just not there yet to have the cost meet the uh benefits of it, in my opinion. But I would imagine that you guys deal with that a great deal on your side of the tracks, whether it be repairing uh damage that solar has caused, having to remove it because you have to replace the roof. I mean, just I'm sure I want to get you guys' take on solar in general.

SPEAKER_02: 50:23

Why is everybody looking at me? Well, okay, so a couple of things. If you have solar, my first advice is make sure your insurance company knows.

SPEAKER_01: 50:32

Above because some of them don't cover it at all.

SPEAKER_02: 50:35

Yes. So make sure your insurance company knows because you want to make sure that you have coverage on your solar panels as well. That is the biggest thing. Hail comes in, tennis ball size hail, 15, 20, 30 minutes, whatever it is, it's going to crack your solar. Mine's a prime example. Mine just got replaced this year as well. But the biggest thing, Mark, speaking about return on investment for solar, um, I'm sure the solar companies are going to be doing some rethinking, all of their pricing. I do not want to overstep or offend anybody in that industry because I have a lot of friends in solar.

SPEAKER_04: 51:07

Sure.

SPEAKER_02: 51:07

I same here. Same here. I know lots of people who own national solar companies and they are amazing. So the biggest thing for solar for me right now is the fact that the tax credit's going away on December 31st. So if you were ever going to do solar and it is something that you're like, I'm 50-50 on, you need to do it this week. I mean this right now. Call somebody you trust. If you don't have somebody you trust, uh, contact us. I will put you in touch with somebody who does it. But right now, the federal government is giving 30% back as a federal tax credit on your solar. So just so everybody understands the mass, the math, if you get a$40,000 system and you're like, hey, I want to offset 100% of my energy, great. Well, right now the government is giving you$12,000 of that back as a write-off. And it actually does come back to you. I can tell you firsthand because I got mine back in 19. I paid mine off in four years, but it produces 100% of my energy. All I have is my connection fee on my home, which is$27.50. Oh, sorry. I'm with C Tech. They just went to$29.50 a month.

SPEAKER_04: 52:10

Oh, C inflation.

SPEAKER_02: 52:11

Exactly. Um, so solar works.

SPEAKER_04: 52:15

Yeah.

SPEAKER_02: 52:15

Uh, I will say, as far as the ROI on it, the return on investment, I don't know what's going to happen next time.

SPEAKER_04: 52:22

It's individu it's based on individuals, truly.

SPEAKER_02: 52:24

Um not just that. The federal tax credit, I don't think people realize how big of a deal this is. Like it is huge.

SPEAKER_05: 52:30

Yeah.

SPEAKER_02: 52:30

If you're trying to put a solar uh farm almost on your on your land where you have a a ranch or something and you're like$150,000 in cash, or you can get it for$100,000 right now. Hopefully wait for somebody else who truly believes in solar in the uh to be elected and vote on it, yeah. That's fine. But if it's something you are on the fence right now, I would at least call and have one final conversation because it has to be installed by the end of the year.

SPEAKER_06: 52:57

Oh, wow.

SPEAKER_02: 52:58

To get that 30%. Again, I've got a long background in solar. Uh that's why I asked. Yeah. So I am a big proponent of solar. However, I also am not sure where they're going after this year. So I will tell you, I know these folks, they're some of the smartest folks I've ever met.

SPEAKER_05: 53:14

Yeah.

SPEAKER_02: 53:14

And they're some of the most trustworthy, and they believe in it too, or else they wouldn't be doing this because I know them very well.

SPEAKER_04: 53:20

Yeah. Well, um, JC, if you could throw it up on the screen there. Uh, this is what ChatGPT says, and this was a claim uh and findings. It says uh there was a paper conducted at a certain point recently in 2024 uh that claimed 65% of homeowners reported structural issues and 50% reported leaks after the installation of solar. So just a statistic for you to wrap your head around. If you're planning on installing solar, it's probably a good idea to call your roofer at the same time to make sure that it's done properly, to ensure that they know what they're doing.

SPEAKER_01: 53:55

Please don't put solar on a 15-year-old roof.

SPEAKER_04: 53:57

Because the idea is 100%. Yeah. Uh and that's a that's a good uh that's a good advice is if your roof probably wouldn't support you, probably shouldn't put solar up there.

SPEAKER_00: 54:08

Well, and the reputable guys are doing that, right, Tom? If you've got a roof that's toast, they they're gonna tell you that it needs to be done before they put solar up there.

SPEAKER_01: 54:16

However, I have clients that have called and they're like, I need to renew my policy. Okay, anything changed? They're like, Oh yeah, we had solar put on. And I'm like, but did you replace your roof? Because that'll help. And they're like, oh no. So they're still out there doing those kinds of things. So just be cautious whenever you're doing solar to just make sure that it's a reputable company because it'll hurt you in the long run for sure.

SPEAKER_02: 54:39

Listen, my advice to everybody out there if you have a question on solar, if you feel you are being misguided, reach out to me, guys. I I am here. This is who I am. I've been this way. I mean, I've known Mark for over 20 years now. Uh, this is who I am. I will answer your questions. I will guide you the best I can.

SPEAKER_04: 54:56

If you have a metal roof, we're gonna flash his contact information like right here.

SPEAKER_02: 55:02

If you have a metal roof, my biggest advice is this tell them do not penetrate your roof. It can be done without penetrating the roof. Okay, stop it, Mark. So again, they can it's not gonna look as pretty. I will tell you this: you're gonna have a little bit more conduit on your roof, but you will not have the holes in your metal roof. As far as shingle, I wholeheartedly agree with Kristen. Anything that's more than six years old, if you're putting on uh solar, please just go ahead and replace your roof right before you do it.

SPEAKER_00: 55:31

Yeah, yeah. Protect your investment. And the cost of removing and reinstalling solar is very expensive.

SPEAKER_01: 55:38

And it's not included too, like in the insurance part of it. If they break it whenever they're doing it, sometimes the warranties don't include, like from a solar warranty standpoint, right? Sometimes they don't include whenever they're replacing it. So they take it off and they put it back on. Some roofing companies won't even touch it.

SPEAKER_02: 55:53

So, yeah, let me let me be clear, guys. If you have solar on your roof and you go to get your roof replaced, the only person who can remove your solar is the company you bought it from. If they are still in business, if you have a question, if they're still in business, we went through this last year with another customer, and they're like, Oh, they're out of business. I'm like, hold off. And I made some calls, and sure enough, I found out I'm like, no, they're still in business. They just pulled out of Texas. But if he would have had somebody else remove his solar, it would have avoided the remaining 15 years on the warranty. So it's stuff like that. Again, I I can't say this enough. If somebody has a question, I don't charge. I truly just want to see people get taken care of properly and make sure that they know there's people out there who will help with no upside on the back end.

SPEAKER_04: 56:39

Well, one thing that we continue to discover over and over on this show is experience does matter. Um, and when trusting an expert versus somebody else, uh you get the real you get the real deal. Um someone that is uh truly focusing on your fiduciary uh uh uh responsibility, truly. Um so guys, this was a great discussion. Learned a lot myself personally. Um, is there anything that we missed to go over?

SPEAKER_00: 57:10

Um if not, I I you know what there is one thing. Please the number one question we get from every homeowner can you wave my deductible? Not not every homeowner, maybe only 99.99 just about all of that. Can you can you waive my deductible? Okay. Um can medical insurance waive your deductible? Right. Uh it's or is that just too logical? So it's uh House Bill 2102, I believe. Not only can we not waive the deductible, but the company and the consumer are both liable for playing any trickery games when it comes to the deductible. And so we have to put in 12 print um on our contract that that specifically mentions from this bill. You nailed it, by the way. That we cannot, is it 12 12 font, I think? Yeah, but we have to have it in our contract. It the details matter, Mark. Um, and so it it was very, very common a long time ago that that companies would do that, obviously. And essentially what you're doing is you're marking up the price, insurance is paying it, and then you're pulling it out. And so the bottom line is, you know, not only will we not, um, because it's against the law, you wouldn't want to put the homeowner at risk, uh, or our company as well. But if you're reviewing a contract and it doesn't have that in there, um, you know, it's you're probably thinking, well, if the guy's gonna pay my my deductible, then I'm gonna run with him anyway. And that's that's your choice, and you can certainly take that risk. But breaking the law, breaking the law, literally breaking the law. And so maybe you got to question some of the other business practices, right? Yeah, and and ultimately we're out here to feed our families and for our employees to feed their families, and and we offer a fair competitive price, but we cannot waive your deductible. Yeah, we have to collect it, and most times we got a call from an insurance company yesterday releasing depreciation, like Kristen talked about, which is the rest of your money that you are due from insurance, we have to send them not only the copy of the check, but that it cleared the deductible in our bank account to prove that the homeowner paid the deductible.

SPEAKER_01: 59:20

So it used to not be a thing.

SPEAKER_00: 59:22

No at all. And it's it's most claims that we're dealing with, they are not releasing until we do that. And so, really, if somebody asked me that, they put me in an awkward situation because the only way that a company would be able to do that would be to uh, you know, create some type of check to send to the insurance company to say, yes, we got the deductible when in case that in fact maybe that didn't happen. And so we've got to pay our deductibles, plain and simple. Um, going back to the deductible talk, sometimes it's not that much of a difference, right? I I did mine, I changed mine from two percent to one percent this week. Um, I'm with USAA and It was$647 a year,$50 a month. Um, and it's an eight-year break-even. I ran it based on the additional one percent. It's eight point oh two years. Do I think that there's probably going to be some type of major storm that hits my house in the next eight years? You bet. I mean, it's unlikely that doesn't happen. Right. And so I come out on top by doing that, paying a little more up front. Right. Once again, go back to your insurance agent, understand your policy, and do what's best for you and your family.

SPEAKER_01: 1:00:28

And a lot of times people don't understand, like, oh, 1%, 2%. It doesn't sound like it's a big difference. But if you have a$500,000 house, huge.

SPEAKER_05: 1:00:35

Yeah.

SPEAKER_01: 1:00:35

A 1% deductible is five grand. So it's five grand out of your pocket right up front. You have a two percent deductible, your policy, yes, is cheaper, you know, over the course of the year, but then your deductible is ten thousand. If you have a three percent deductible, it's fifteen thousand. So yes, that fifty bucks a month, although you know, may sound like a lot, it your break-even would be what, 10 years?

SPEAKER_00: 1:00:57

Yeah, eight to ten years. And and that's the thing is if you're worried about, you know, your policy being$30,000,$40 a month less, then chances are if you get hit with a$10,000 or$15,000 deductible, that's going to be life-changing and very difficult for you. So sometimes it's easier to budget, right? To have that better policy in place, because that's why we have insurance. We only have insurance for major events, car insurance, health insurance, life insurance for major events. And so if you if you take a step back and realize that if I have a major event with my house, do I have the$15,000 or$20,000 deductible? Um, and even if I do, do I want to part with it?

SPEAKER_04: 1:01:37

Right.

SPEAKER_00: 1:01:37

Right. Right. Those are the conversations. Because even if you have it, you don't want to write a check for$20,000 on your deductible. And so as long as you have these conversations and and you can be informed and you you are able to work with an agent that can answer your questions, at the end of the day, you make the decision you want to make. Uh, but ultimately, you know, those are those are the types of questions you need to ask and partner with somebody, you know, that that can help you. You know, I always tell Tom we want to be we want to be surrounded by smarter people than us. Yeah, right.

SPEAKER_04: 1:02:04

Oh, that's not hard.

SPEAKER_00: 1:02:05

Well, that's well, you know, what's funny is um uh, you know, shout out to Jenna that does a great job and Nolan and Liberty. Um, but the bottom line is I feel like we are the smartest people in the room because we're surrounded by the smartest people in the room.

SPEAKER_07: 1:02:22

Boom.

SPEAKER_00: 1:02:23

And we have those resources. We don't have to know everything. You have to know somebody that knows everything. That's right, and make them part of your team.

SPEAKER_04: 1:02:29

I agree.

SPEAKER_00: 1:02:30

And so that's why relationships are so important.

SPEAKER_04: 1:02:32

That's awesome. Um, uh, just to throw it up on the screen, real quick, JC. This is uh if you guys want to look it up and and read more about trying to dodge your deductible. This is HB 2102, uh, specifically states what Marcus mentioned here that a consumer has to pay their deductible by law. Just so you know. Look at that 12-point bold face. I mean, on the money.

SPEAKER_02: 1:02:56

Insurance fraud is a real thing, people. Oh, please, right? Please do not risk your future over saving a few bucks.

SPEAKER_04: 1:03:02

Amen to that.

SPEAKER_02: 1:03:03

Um Mark, if I may, real quick. Please close this out. Yeah, you asked a couple of questions about things that people uh ask about. Number one question I get all the time, or comment first, which leads to a question. I don't want to file a claim. You know, I know my roof is messed up, I know I've got a leak, but I don't want my uh premiums to go up.

SPEAKER_05: 1:03:20

Yep.

SPEAKER_02: 1:03:21

Let me help you out. It's it's not going up for you filing a claim. Okay. We are grouped out here in the Texas Hill Country, San Antonio. We're with Houston, uh, Austin, Dallas. So if they're raising policy policy prices for anybody in there, they're raising yours anyway.

SPEAKER_04: 1:03:36

Right.

SPEAKER_02: 1:03:37

Every time you see a new roof going up, that's why prices keep going up.

SPEAKER_04: 1:03:40

That's exactly right.

SPEAKER_02: 1:03:41

Their coverage 100%.

SPEAKER_04: 1:03:43

So And we're not talking the consumers' coverage, we're talking about the insurance company's exposure and coverage.

SPEAKER_01: 1:03:49

Law of large numbers.

SPEAKER_04: 1:03:51

Correct, correct. Say that again in into the microphone.

SPEAKER_01: 1:03:53

Yeah, the the law of large numbers.

SPEAKER_04: 1:03:55

There we go.

SPEAKER_01: 1:03:56

They group everybody together, so you're all in an insurance pool together. So it's not just you, it's everybody.

unknown: 1:04:01

Yeah.

SPEAKER_02: 1:04:01

Yeah. So again, my biggest thing, I want to piggyback one last time, and I say this if you run into a roofer who says he's going to pay your deductibles, do not, do not, do not go with them. They're cutting corners somewhere. I will tell you shingles specifically, there's just not much money in them. Just so you guys know. And again, it's not about that. It's about the care factor. You want somebody who's going to do it right, take care of you. That way you don't get bit on the back end. That's right.

SPEAKER_04: 1:04:26

Well, guys, I want to thank you for joining me in this discussion. Um, like I said, I learned quite a bit in this talk about insurance and roofing and coverages and all of the things. And for the folks out there, uh, the two most valuable pieces that I took away from this is number one, cheaper doesn't always mean better. Um, and the most important thing is check your insurance policy at least one time a year. Um, that way you know what you're covered for, ask questions. Um, and as new homeowners or those looking for uh their first home, get with an insurance broker, get with a roofing company, get with an inspector to determine what you're going to be getting yourself into, what kind of coverages uh you're gonna need and understanding what all the coverages mean. Um, because the one thing you don't want to have is the insurance when the shit hits the fan. Uh that being said, guys, we will catch you on the next one. Alright. You guys rocked it. Very good. Uh the new uh headphones just passed customs in T Mode. If you're still sending out pre-approval letters and praying your realtors send you the next lead, you're already behind.

SPEAKER_03: 1:05:52

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