Due to a tropical storm, our roof got damaged and we have leakage -> needs a huge repair job, so I called the insurance company to come and look. They came over and now I received a letter stating:
Based on our investigation, and a thorough review of our policy, it was determined your covered damages are 8,103.52 dollars. Enclosed for your review is a copy of the repair estimate prepared by our field appraiser.
So then there is an estimate, which states:
Replacement Cost Value: 8,103.52
Less Deductible: 1,000.00
Net Claim: 7,103.52
Then there is a check for 7,103.52 dollars with it. Now what do I do next, if I decide to have them fix it, I will have to pay 1000 dollars from my pocket, right? Say I find someone that wants to do it for 7000, can I just deposit the check in my account and then have someone else do it for less, …?
Please explain to me the legal steps I should take in case I find someone that wants to do it for less than 7,103.52? Deposit the check, …?
Posted: 22 Sep 2008 07:01 Post Subject:
So they sent you a cheque already? My concern is what if the repairs cost more than they sent you? You should get on the phone to roofing contractors ASAP to get quotes done and work started.
It appears that your insurer is confident that the work will cost $8,103.52. If it costs less than that you should not have to refund the difference as they paid you less the deductible.
Say I find someone that wants to do it for 7000, can I just deposit the check in my account and then have someone else do it for less, …?
I believe that is correct. My concern for you is if the $8103 is not enough and you have accepted the offer.
I am a broker, not a claims adjuster, so I am only speaking from experience, not absolute certainty. I am from Ontario, Canada so things may be different depending where you are from. And I obviously don't know all the details ...
But all in all you should be able to cash the cheque and do the work without worry if it will cost less. Chances are your insurer is doing it this way to be as efficient as possible - they are likely overloaded with similar claims.
Hope that helps.
Posted: 23 Sep 2008 12:36 Post Subject:
You already have "paid" $1000.00 out of your pocket; that is why the check is for $7103.52 and not $8103.52.
The $8100 is what the insurance company estimates the repair to be. First thing I would do is get a couple of estimates from reliable, licensed roofers/contractors. If they are for less than $7100, then the remainder is yours. If it is for more, then you should be able to file a supplemental claim. If your first quote is for more than the $8100, I would get a couple more - this would look better when you file your supplemental claim.
Posted: 24 Sep 2008 10:22 Post Subject:
Is the draft made out only to you? If so then yes you can deposit it and get bids and pay whomever you wish to have repair/replace your roof, however, if it is more than the 8k then you need to contact the adjuster BEFORE the roofer starts and have them discuss the estimate.
If it is made to you and your lein holder you will need to talk to them. If it's made to you and a specfic roofer and you don't want them doing the work you need to contact the adjuster to stop pay on this draft and re-issue another.