Do contractors usually charge tax for insurance claims?

[Terry Hollinsworth]

Insurance agreed to pay 21K to replace roof. After we gave the contractor our insurance papers he charged quoted us: 

Roof replacement cost

TAX

O&P (Overhead and Profit) 

His quote convinently came out to 20K. Do contractors usually charge tax and overhead and profit?

[Chris Seveney]

@Terry Hollinsworth

Yes. Did you tell them the number ahead of time

Roofing is one of the trades that is very ti review the cost of if you know how many squares you have as finding the going rate in your area is not difficult

[David M.]

@Terry Hollinsworth

Sounds like you gave him the number ahead of time.  Of course, he will charge the max amount you have available to pay...  :(

[Jerry V.]

Terry, just replied to you about the claim and all in another post you had (about all this)

Answers:  There are taxes on "materials" that are done... and the O/P is only applicable if, the Contractor is doing 3 or more different trades on a project. I.e. Roof, gutters, siding, fencing ... BUT, the insurance companies don't always pay O/P now!

As said in my other post, call us ... we're in your area! (Dallas, TX area -  J's Roofing)

[Bruce Lynn]

If you are in Dallas area, call Alex Lopez at Fire Fighter Roofing for a 2nd opinion.  Fair priced and great roofer...he's done mine twice.

You can also try Tarrant Roofing....they work all over the metroplex.   Kelly is my contact there.

Happy to give you phone numbers if you need them.

They should probably charge sales tax, but don't remember specifically.   If it is more than your insurance estimate, typically they can negotiate with the insurance company to get you covered.