What should I do about the quote i got from our home owners insurance?

Question

We had water damage back in January that is covered under our home owners policy. The problem is I'm into my 2nd month of this and nothing is close to being done. My floors have buckled and could fall in at any time. One bathroom is completely ruined. Monday I received a letter from the insurance company. They estimated damages at $3900. I have to pay my $1000 deductible and they will only give me $1300 up front. They said if I can get a general contractor to do all the work they listed for that amount they will give my back $900 more after the job is done. So I have to put out $2600 of my money to fix this. Well I talked to several contractors, one told me "if they could get someone to to all the work for their quote, tell them to send them to your house" then he laughed about it! The insurance company also gave us $1.48 for labor per sq foot. I have been told that the going rate in my area is $4 a sq foot. What should I do!

Answer 1

Generally insurance companies will refer you to a contractor who will do the repair for the amount they quoted, before deductible. Have you tried asking?

Insurance companies are known for low-balling the damage assessment. Their hope is you will cash the check and go away, and possibly never do the repair. So long as you can document the damage and you follow through with the repairs, you have a solid case for forcing them to pony up.

It does sound like you may have to pursue this legally. Insurance companies for some reason respond much better to an attorney than the homeowner. I would make contact with an attorney to get their guidance on how to pursue this... not with the intent to sue, but with the intent to convince the insurance company you will sue if it comes to that.

For now, it is most important that you document everything in anticipation of a lawsuit. Make videos, put your words in writing and keep copies. Prepare for battle.

Answer 2

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Answer 3

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Good luck!