Adam Bensman shows contractors how to use contingency agreements as a closing tool. The agreement lets you negotiate with insurance on the client's behalf, locks in your price, and names you as the preferred contractor if damages are covered. It's risk-free for them: if insurance won't pay, the agreement voids and they owe nothing.
What we want to do is twist how we present the contingency agreement and package it up first, real nice, to make it look like it's in their best interest to sign it, and it actually becomes a sales tool. And this contingency agreement does three things, okay? Now, first, it allows me to go to bat for you with your insurance company because by law, your insurance information is protected. Now, number two, it locks in the price. My price lock guarantee. Make sure that if the insurance company says the project will be 12,000, I can't come back and call it 15,000. The third thing it does is it states that after we help you get your roof covered and all the other damage, we become the contractor of choice to do the work. So if the insurance company comes back and says we're not going to cover it or the coverage is insufficient and we can't change anything, then this becomes dust in the wind, it is ripped up, and you don't owe us a dime. Sound good? Perfect. Now, let's move on to the contingency agreement. All I need for you to do is date and sign here. Boom, and it's done.
