Can my settlement check from homeowners insurance claim be canceled?

Question

I filed a claim on my homeowners insurance few months ago. I had a contractor in mind who ended up working with the insurance adjuster to get to an agreed $ amount. I found a different contractor who could do the same amount of work and upgrades within my budget.

The first contractor got upset, demanded some money and wanted to call the adjuster to re-issue me a different check since he was not going to be doing the work anymore. Contractor also mentioned that he would be informing the adjuster of false condition of the house to void the claim. I offered a less amount of money to reimburse mileage and gas; since estimates were supposed to be free, but he then began to threaten.

Answer 1

Contact your adjustor and let them know and yes they can cancel the first check and reissue you another one.

Answer 2

Just explain your story to the insurance company, .

they will tell you what must be done, and if they won't help, better read your contract with the contractor.

If there is no contract, sue him for your money.

Answer 3

The insurance company owes you the reasonable amount to repair the damage less your deductible. For example, if the one contract says it will cost $2500 to repair it and the other contract can do the work for $1500, you can't take the extra $1000 and put it toward upgrades. The insurance company only owes you the actual cost of the repairs. The estimate is just that, an estimate. If the repair cost less, you would owe the insurance company a refund. If they find out, they will demand their money back, and will be entitled to it.