When you receive the adjuster’s breakdown of your insurance claim, look for the line items Overhead and Profit. Commonly known as O&P, this covers the cost of a general contractor to oversee your reconstruction.
Depending on the size of your claim, your repairs may take several tradespeople to complete. Examples of tradespeople are painters, wallpaper hangers, carpenters, masons, electricians, and plumbers. If your reconstruction needs at least three trades, a general contractor is considered necessary to coordinate and supervise the job. Whether you want to hire one is up to you, but you’re entitled to be paid for the expense.
O&P covers the general contractor’s time and expenses and is usually calculated as a percentage of the overall cost of the job. Overhead covers the cost of equipment, facilities, and operations for the job. Profit is how the general contractor earns a living.
We often see the O&P omitted and if you don’t know you’re entitled to it, you won’t know to ask for it. Take a look at the adjuster’s summary, usually on the last page of the estimate, and check for the line items Overhead and Profit. If you don’t see it and can’t find it anywhere else in the estimate, ask the adjuster to add it. This is a legitimate expense and you are entitled to collect it.
Contact Us Today!
At Robert L. McCormack Public Adjusters, we offer many services, and can truly help you throughout the course of your claim. We’ll make sure you get your O&P and everything else you’re entitled to. Contact us today via email, or by giving us a call at 508-588-4243.