Insurance Overhead and ProfitO&P on Insurance Claims

If you’ve ever made a roofing claim on your homeowner’s insurance, chances are you’ve heard your roofing company or general contractor talk about O&P? O&P stands for “Overhead and Profit”. In the context of roofing and exterior services, it refers to the portion of your claim that covers the project management and overhead expense involved in managing your renovation project.

What O&P covers

Through O&P,  professional contractors like Peak Roofing & Construction are able to provide a smooth customer experience. Instead of you liaising between your insurance company and your roofing contractor each time an amendment needs to be submitted, Peak does it for you. For customers without O&P included, the back-end coordination of trades and scheduling can seem like anything but magic.

Who decides if O&P is included?

While the Texas Department of Insurance provides a guideline of what insurance companies should cover. However, the insurance companies themselves determine whether project management is necessary. When O&P is excluded, it is up to the service provider or property owner to provide justification for adding it to the claim.

“Your team was so helpful. When we had trouble with our insurance claim, you provided the photos and information they needed to eventually approve it. Our project manager was so knowledgeable. I’m glad we had you on our side.”

Jana B.

Frisco, Texas


The backstory

Most reputable insurance companies understand the complexity of project management after a storm and are willing to pay for it. Although, there are valid reasons to question it as well. Unfortunately, Texas does not require roofing companies and many trades to be licensed, and as a result, Dallas-Fort Worth and Austin, TX have more than their share of unscrupulous companies making false claims. These fly-by-night companies abused the system and caused insurance companies to be more stringent in evaluating what they agree to cover.

What if my O&P claim is denied

If your claim is denied, the first thing you should do is speak with the insurance company to understand why. Your contractor can assist you in this process. Sometimes it’s as simple as submitting missing information or additional photos. If not, you can appeal the decision. The final option is hiring an insurance dispute attorney to pursue the case.

Note: Peak Roofing & Construction provides this information based on over a decade of experience working with insurance companies and is not claiming to be legal experts on the topic.