WEBVTT

NOTE
This file was generated by Descript 

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What is a contingency agreement?

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Well, I'm gonna be answering
that question in this video.

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So whether you are a roofing
salesperson, or whether you might

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be a homeowner or property owner
who stumbled upon this video, I'm

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gonna help demystify the wonders of
what this contingency agreement is.

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Point out some of the fallacies
behind the, the idea behind

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them, and to help you understand.

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Why it is actually in your best
interest to both use them and to use

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them with the contractor of choice.

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Before we go any further, I just
wanna introduce myself quick.

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Uh, my name is Adam Benjamin, the
roof strategist, and my mission

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is to help roofing sales reps
like you smash your income goal.

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But this is the important part, and give
every customer in amazing experience.

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So this video, again, I, I recognize
being YouTube that homeowners

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may stumble upon this video.

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And if you are a homeowner that
is watching this, I just want you

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to know that everything I teach
is designed about, around creating

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an amazing experience in the home.

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My personal mission is to bring joy
back to the process of working with a

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contractor, cuz it's known that roofers
in general have a horrible reputation.

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There's deception used, there's
scams that are all over the

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internet and all over the news.

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And what I wish to do is to create a
platform for homeowners and contractors

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to connect, to do business with
good people and bring some happiness

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through, quite frankly, usually not
a happy time to replace your roof.

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So I hope this video helps.

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And for the, the sales folks who are
tuning in this video is for you to

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understand what this contingency is.

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How do I communicate it to homeowners?

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And maybe you even wanna share
this video with them to help them

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really understand what's inside.

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All right, now let's get to it.

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Now a contingency agreement is truly
an authorization to work together.

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And many people wonder, is it binding?

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Is it legally enforceable?

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How do I cancel it?

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So I'm gonna address kind
of all that and more.

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And then at the end of this
video, I'm gonna link to you,

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uh, to a whole bunch more videos.

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I've done covering those in more depth.

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So let's first cover just the
core concept of what a contingency

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agreement is, because some roofing
companies, quite frankly, use them.

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The wrong way.

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They make it all about them.

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Like, I need this, you need to sign this.

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And then it becomes very pushy.

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It's very aggressive.

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Many homeowners get buyers' remorse
where they like autograph something and

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they'd be like, oh no, what did I sign?

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Do I have to buy a roof?

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What if we don't need a roof?

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Do I need to give them money?

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And they, and they panic and rightly so.

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So it's very important for both
sides, the roofing salesperson and the

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homeowner to, to again, communicate and
understand what this whole thing is.

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So the authorization to work together
goes as follows, see a roofing company.

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Working with a homeowner through a storm
damage process, this often includes an

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insurance company who may decide to cover
the damages that have occurred to a home

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due to a severe weather event like hail,
wind, or hurricane, maybe even sometimes

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like a tree falling on the house.

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Something like that, meaning
severe weather impacted the roof a.

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Roofer who is a storm damage expert and
has replaced storm damage roofs in the

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past, is investing a tremendous amount
of time, energy, and expertise to serve

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the homeowner through that process.

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As you can imagine, if I were to
buy my roof electively, which in

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our world is called a retail roof
replacement, meaning my roof's, you

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know, 25 years old, I need a roof.

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I'm gonna jump, jump on Google search and
call the company up and get an estimate.

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When we do that, that roofing company
shows up and they're like, well,

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here's my estimate, and they rock
and roll and get the project done.

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But when serving a homeowner who has
experienced some significant damage,

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there is a lot more work and steps
that a storm damage expert provides to

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a homeowner that we do not bill for.

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But as a business, the operational
side, there's a tremendous amount of

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work and most importantly, value that
is provided to the property owner,

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which includes a few of the following.

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Number one, it often includes meeting
with the insurance adjuster on site.

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So there's a whole separate
visit to the home and the.

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Representative of the roofing company
is there to meet with the insurance

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adjuster, to act as another set
of eyes and to act as an assistant

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to help identify everything.

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Sometimes these insurance adjusters,
they are not contractors, so there

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may be some discrepancies regarding
the repair process where they say,

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Hey, we can, we are gonna do this
repair, or is this damage, is it not?

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Do you need to access this?

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And these questions require a contractor
who's familiar with the process.

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To help through the adjuster appointment.

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So that's service number one.

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Okay.

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Service number two that the roofing
company provides to the homeowner is

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helping throughout the entire process.

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Now, let me explain a little bit further.

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When the insurance company is out in the
very beginning, they can sometimes omit.

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Leave out or not include items of the
repair process that need to be in there.

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And oftentimes this is not ill
will, it's not an insurance

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company trying to work an angle.

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And I know that if that stuff
comes up, that's a legal affair.

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That's beyond my scope of expertise.

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Okay.

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But it, it often comes up and in
fact, when I was a contractor,

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And about 98%, which I know sounds
crazy, but it's, it was true.

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About 98% of the projects we worked
on with the insurance company came

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back and said, this is what they
call our scope of repairs, meaning

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line items of what needs to get done.

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We came back with more because
we understood the whole process.

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We understood the.

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Code items, the the updated
code items that were there.

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In very similar, if you were to
replace a vehicle transmission,

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I'm not a mechanic, and I just
said, replace transmission 4,000.

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The mechanic might be like, what?

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But I need to, I need to pull
the whole undercarriage out.

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I need to detach the engine from
the transmission, which is gonna

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require a transmission fluid flush.

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And then I gotta pull the transmission
out, do the service, put it back together.

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So in order to get to the transmission,
we have all these other points.

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And the same applies with a roof.

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So someone might come up there and
be like, well, we're gonna do this.

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But they didn't realize the whole scope of
what needs to happen to get to that item.

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So as a storm damage expert, we
serve homeowners through that process

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to say, okay, listen, you may have
received X amount or X scope of loss

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from the insurance company, but we
understand the scope of repairs and

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we need to submit documentation.

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To the insurance carrier regarding
the scope of the repairs.

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Okay?

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That insurers, that you don't have
any surprise expenses because a normal

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roofing company is gonna be like,
all right, here's your estimate,

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and, and you're gonna be like, well,
this estimate's here and this what.

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Which by the way, if you are someone who's
searching for more estimates and you think

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that you need to get three, surprisingly,
you actually don't, and, and hang with

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me, I'll explain that in this video.

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Uh, what to do if your insurance
company tells you to get three

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estimates, and that's for both
homeowners and for contractors.

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Okay.

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Alright.

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Now, as we go through that process,
again, that is a tremendous value that

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is provided to the homeowner because
otherwise, and this happened to me, I

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had a gentleman call me out for his roof.

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I, I gave him an, an estimate
cause I didn't know it was,

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uh, storm damage process.

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I start doing the roof.

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There were surprises beneath it that no
one saw, including the insurance company.

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At this point.

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I didn't know that it
was insurance damage.

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I thought it was just a guy
that needed a roof, and the

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roof price literally doubled.

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We found that one layer, not
two layer, three layers of roof.

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We had to tear it all off the entire
roof, needed to get red deck with

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new plywood, and I had to call and be
like, it's gonna be an extra $8,000.

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And this was way back when, when the price
of roofing was like half what it is today.

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And the guy says to me, he goes,
Adam, wait, this is, this is, uh, I'm

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going through a storm damage process.

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Does that change anything?

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And I said, well, yes it does.

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So we ended up doing, is I, I came
out and I said, let's just authorize

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this contingency agreement that
allows me to communicate with the

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insurance company regarding the
scope of the, of the repair process.

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I submitted all the photographic evidence.

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Uh, of what needed to get done.

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And the homeowner ended up only coming
out pocket his deductible, which I

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think was like a thousand or 1500 bucks.

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So I saved him nearly $8,000,
7,000 in change because of

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providing this additional service,
which again, I didn't bill for.

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And if we just look at this like
objectively, I could have just

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been like, well, tough luck.

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Like I'm gonna get paid no matter what.

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It's in the contract that he signed.

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But a storm damage company who's
an expert understands the value,

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and we're here to serve homeowners
through these turbulent times and make

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sure there's no financial surprises.

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Okay, so that's, that's value
number three, excuse me.

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Number two, to the homeowner.

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Now, value number three to the homeowners.

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What what's called, what I
call our price lock guarantee.

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Now, that's my language that I use, and
I know folks who are using our system.

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Often use that language as well.

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What does that mean?

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That means that your
obligation is your deductible.

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No more, no less without.

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And there is some fine print.

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I just wanna be clear.

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The fine print includes if
there are code items that your

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insurance company does not cover.

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Sometimes that might be, Hey, in order
to get this to code, we need, uh, an ice

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and water shield, which is like a, a leak
barrier, uh, placed here, here and there.

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And if there's no code endorsement of
policy, we have to follow building code.

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So that could be a rare exception.

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So do, do communicate that with you,
uh, in your working relationship.

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It, it does not include elective upgrades.

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So if you decide that you wanna go
with a nicer shingle or a premium

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color, or a premium shingle or an
impact resistant shingle, those

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are, those are outside there.

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And then the other item that is the
disclaimer is any rotted decking.

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And again, there are some situations where
an insurance company could cover that, but

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sometimes it is not covered and we just
wanna be sure that it's crystal clear.

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And the billing rates for those are,
are usually detailed on the agreement.

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All right.

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Now that price lock guarantee just ensures
that it's our job to document everything

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so there's no financial surprises.

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And those are mitigated.

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Those, those three disclaimers, again,
elective upgrades, if you don't wanna

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do those, that's out the window.

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If you have code coverage,
that's out the window.

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And the third one is right, a decking.

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And generally a, a prior roof
inspection or a quick peek in the

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attic, we're gonna get a really clear
pulse on what that might look like.

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So it's actually quite safe and
secure to use the contingency

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agreement in this fashion.

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And then in terms of the big
question of like, Well, what happens

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if our roof doesn't get approved?

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Do we still owe you?

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The answer is no.

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Hence the name.

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Contingency agreement means that if
the insurance company comes out and

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determines that they're not going
to cover any damage or repairs, then

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that agreement's dust in the wind.

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You don't owe the contractor anything, so
the homeowner does not owe the contractor

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anything at all to get the roof.

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Done.

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You're not like required to buy a roof.

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So there's truly everything to
gain and literally nothing to lose.

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And at the end of the agreement is
the important part that everyone

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needs to be on the same page.

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That should you sign this contingency
agreement and your storm damage expert

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serves you throughout the process.

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They do not bill for the time,
energy, and expertise to meet with

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the adjuster, document any additional
items that might have been missed

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to again, avoid that falling on you.

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The only way that the contractor
gets compensated is by actually

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being the contractor of choice.

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To do the work, whether that's
repairs or replacements.

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So the contingency agreement is an
authorization that says, Hey, I like you.

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Let's work together.

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I'm gonna autograph this and authorize
this working relationship to let you, Mr.

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Contractor, meet with my insurance
adjuster, navigate this process.

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Help if there's any items that
might have been missed to avoid

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financial surprises landing on me.

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And we're, I'm not going to,
the contractor will not bill a

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homeowner at all for any of this.

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And then the only way that we
get compensated is by actually

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doing the work at the end.

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So it's like a good faith and added
value and added service because what

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many people realize is that, uh, don't
realize is that like a traditional

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roof replacement and a storm damage
claim are completely different animals,

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very, very different animals and much
more on that in, in later sections.

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So in summary, the contingency
agreement says three things.

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One, it allows the contractor to
discuss the details of repair with

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the insurance company on your behalf.

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Cuz I can, you can only imagine that
your information's protected, right?

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It's private.

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Number two, it states that your
contribution is your price lock guarantee.

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There are no uh, surprises.

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You're not locked in anything and it
is completely contingent upon approval.

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So when I say locked in, I mean
you will be using a contractor.

00:11:37.760 --> 00:11:41.300
If they get everything set up the
way it needs to be for you to get

00:11:41.300 --> 00:11:44.540
the roof replacement, but you're not
required to go buy a roof if they don't

00:11:44.540 --> 00:11:46.189
need to, and there's no surprises.

00:11:46.189 --> 00:11:49.520
Your contributions, your deductible,
no more or less with the exception

00:11:49.520 --> 00:11:52.550
of those code items, elective
upgrades or routed decking.

00:11:52.670 --> 00:11:55.459
And the third thing states that
they'll become the contractor

00:11:55.459 --> 00:12:00.020
of choice to actually do the
work should it get approved.

00:12:00.020 --> 00:12:02.150
So again, there's everything
to gain and nothing to lose.

00:12:02.474 --> 00:12:06.194
And as a homeowner, my best advice is
make sure you're comfortable with the

00:12:06.194 --> 00:12:08.435
contractor and knowing that this actually.

00:12:08.970 --> 00:12:13.080
Provides a a very valuable working
relationship for you as opposed to

00:12:13.080 --> 00:12:14.250
something that you're locked into.

00:12:14.490 --> 00:12:15.270
So there you have it.

00:12:15.270 --> 00:12:17.550
That's what the contingency agreement is.

00:12:17.790 --> 00:12:22.020
And once that roof gets approved and
you begin through the process of getting

00:12:22.020 --> 00:12:25.230
the replacement done, all the financial
transactions, everything will be detailed

00:12:25.235 --> 00:12:28.020
onto what will become then a contract.

00:12:28.020 --> 00:12:30.960
So you have documentation of
all that work, all the financial

00:12:30.960 --> 00:12:32.610
transactions and all that jazz.

00:12:33.104 --> 00:12:35.505
So I hope this helps you
understand the big question,

00:12:35.535 --> 00:12:37.094
what is a contingency agreement?

00:12:37.484 --> 00:12:40.635
Now, if you want more on this topic
and if you're in roofing sales, click

00:12:40.635 --> 00:12:44.204
this playlist right up here and in
that playlist on using the contingency

00:12:44.204 --> 00:12:46.935
agreement as a closing tool, you're
gonna learn how to position it

00:12:46.935 --> 00:12:48.285
and communicate it appropriately.

00:12:48.435 --> 00:12:50.324
You're gonna learn should
you use it, yes or no.

00:12:50.324 --> 00:12:53.354
Cuz a lot of people still do this
handshake deal and I'm just not about it.

00:12:53.354 --> 00:12:55.905
I'm not willing to do put in that
much time, energy, and expertise

00:12:55.905 --> 00:12:58.005
to serve a homeowner if they're
not willing to work with me.

00:12:58.215 --> 00:13:01.814
Because they often get canceled or we
get taken advantage of, and questions

00:13:01.814 --> 00:13:03.465
like, are they even enforceable?

00:13:03.495 --> 00:13:06.585
And again, jump in that playlist, you'll,
you'll get answers to all those questions.

00:13:06.885 --> 00:13:07.695
So thanks for joining me.

00:13:07.695 --> 00:13:10.485
Whether you're a homeowner or welcome, I
appreciate you being here, salesperson.

00:13:10.485 --> 00:13:14.505
I hope this video helped you understand
what this contingency is so you

00:13:14.685 --> 00:13:18.285
can not feel afraid any longer or,
or nervous about bringing it up.

00:13:18.465 --> 00:13:20.805
And if you are in roofing
sales and you wanna learn.

00:13:20.820 --> 00:13:23.940
How to present the contingency
agreement in a way that that homeowner

00:13:23.940 --> 00:13:25.350
actually truly wants to sign it.

00:13:25.710 --> 00:13:29.100
And, and if you wanna start closing
deals confidently in the house without

00:13:29.100 --> 00:13:32.370
sounding or feeling sleazy, salesy, or
pushy, then invite you to learn more

00:13:32.370 --> 00:13:33.660
about my roofing sales training system.

00:13:33.660 --> 00:13:36.060
And there's a link in the
description, uh, or you can text

00:13:36.060 --> 00:13:38.970
the word demo, d e m o to 3 0 3.

00:13:39.705 --> 00:13:41.925
2 2 2 71 33.

00:13:41.955 --> 00:13:45.195
That's 3 0 3 2 2 2 71 33.

00:13:45.435 --> 00:13:47.385
Hey, thanks for joining me on
this video and just cuz our

00:13:47.385 --> 00:13:48.525
time here is about to wrap up.

00:13:48.705 --> 00:13:50.535
Doesn't mean your and my time has to.

00:13:50.745 --> 00:13:53.265
So if you are new and haven't
yet done it, jump into my free

00:13:53.270 --> 00:13:54.345
training center right here.

00:13:54.615 --> 00:13:56.685
And if you wanna learn more about
the contingency agreement, jump

00:13:56.690 --> 00:13:59.415
right into this playlist and
I'll see you on the next one.