MODULE 4: ADVANCED CHALLENGES

Limit Exhaustion

Lesson 4.2 - The Billing Blueprint: Mold Edition

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What Is Limit Exhaustion?

Insurance has paid the full amount available under the policy.

Limit was $10,000. They paid $10,000.
There's no more.

This is different from denial or reduction.
They're not saying you're wrong - they're saying coverage ran out.

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Path to Payment

            Your path to the remaining payment is

            not insurance.

            It's the customer.

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Your Foundation

If you followed Module 3 process...
Customer acknowledged coverage limit before work
Customer acknowledged responsibility for amounts above limit
They signed documentation

                You're not surprising them with a bill. You're collecting on an obligation they already agreed to.
            

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Customer Payment Options

Full Payment

At completion
Ask for it first
Some will pay

Progress Payments

1/3 start, 1/3 mid, 1/3 end
Reduces your exposure

Payment Plan

Monthly payments
Get it IN WRITING
Specify schedule

Third-Party

HELOC, personal loan
Credit card
They pay lender

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Always Get It In Writing

Total amount owed - exact figure
Reference to original work
Payment schedule - when each payment due
Late fees/interest - if legal in your state
Default terms - what happens if they don't pay
Both parties sign and date

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If They Don't Pay

Start friendly - polite reminder, assume oversight
Send invoices on schedule - consistent billing
Phone call before formal notices
Written demand letter - formal tone, deadline
Small claims court - up to $15-20K depending on state
Collection agency - they take 30-50%
Mechanic's lien - file against property

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Protect Yourself

Get acknowledgment before work starts
Get written confirmation of limit exhaustion from insurance
Keep records of all payment communications
If customer stops paying during job - think carefully before continuing
Know lien deadlines in your state (strict timing)

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Prevention is Best

Clear communication before starting prevents most disputes
Written acknowledgment prevents "I didn't know" claims
Progress payments reduce your exposure
Watch for warning signs - avoiding payment talk, not returning calls

Trust your instincts. If something feels wrong, proceed cautiously.

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Key Takeaways

Limit exhaustion = insurance paid their max
Remaining balance is customer's responsibility
Your upfront documentation gives you standing to collect
Offer payment options, get arrangements in writing
Collect professionally - start friendly, escalate as needed

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Coming Up Next

Lesson 4.3: Complex Situations

Mold found during water jobs
Hidden mold discovery
Multi-unit buildings
Commercial work

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MODULE 4: ADVANCED CHALLENGES

End of Lesson 4.2

Limit Exhaustion

Action Item: Review your payment agreement template. Have attorney review it.

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