Insurance claim low balling

[perdedoras]

I have several contractor estimates in the excess of 25,000 - 30,000 for a catorgory 3 water damage claim that occurred in my home. After negotiating for approx 5 months, Insurance isn’t budging above 11,000. As of now , I have a gutted out bathroom and insurance is dropping the ball. Whats the best steps to take to resolve this issue. I have plans of filing a complaint with the department of insurance and filing a lawsuit. What do you recommend for this situation

 

[jesus%E2%9D%A4%EF%B8%8Fandwantsthebest4u]

@perdedoras Well there are many factors that are not mentioned here to properly recommend anything. To name a few:

1. Is the $11k the actual cash value (ACV) amount for the repairs or the replacement cost value (RCV) amount for the covered damages?
2. Does your policy have RCV coverage?
3. What has your adjuster told you regarding why they are not accepting the contractor's estimates? Are the contractors replacing with higher grade materials? Are they trying to do a whole remodel of the bathroom vs just addressing the damages? These are usually the issues.
4. How much Overhead and Profit (O&P) is the contractor including on the estimate, usually 10% overhead and 15% profit, and has the adjuster advised if O&P is warranted for this repair? Additionally, O&P is usually a paid while incurred expense and would not be paid with the ACV payment, only when the repairs are completed.
5. Does the contractor estimate include repairs to any damages that are not covered by the policy, for example the plumbing repair?

If the adjuster provided you an itemized estimate compare it to the contractor's and you will see where the differences are.



If the adjuster rejected the estimates and/or requested support from the contractors to determine if those additional costs are required but has not received that information you may want to follow up with the contractor.

 

[johnredeemed103]

@jesus%E2%9D%A4%EF%B8%8Fandwantsthebest4u Did you read the post? He says he’s being lowballed…that’s all you need to know!!

/s

 

[resjudicata]

@johnredeemed103 Lol customer said I low balled her on her roof and then a month later had someone replace it for less

 

[jesus%E2%9D%A4%EF%B8%8Fandwantsthebest4u]

@resjudicata Ya I have that all the time when they get one estimate, sometimes maybe two, especially on Mobile Homes and especially in Florida. I always tell my insureds that 1) you have a MH and contractors always shoot for the moon with their estimates so it's worth their time to do the work and 2) if you are in Florida you will see this happen 75% of the time where the contractor comes in 2-3 times as much as our estimate with no itemized estimate just a few lines written down no support for their pricing and a nice big round number. They usually get back to me after talking to the contractor and say ya you were right they were trying to take advantage of insurance promising them a new bathroom, kitchen, roof etc and all upgraded materials and whatnot. But hey we're the bad guys

 

[johnredeemed103]

@jesus%E2%9D%A4%EF%B8%8Fandwantsthebest4u Yep especially when it comes to insurance rates going up…definitely our fault

 

[resjudicata]

@jesus%E2%9D%A4%EF%B8%8Fandwantsthebest4u muh man’s out here walking on MH roofs God speed bro. Just got off a 25 sq roof writing this up and having the “roofer” look over muh estimate to make sure I didn’t miss anything gonna shake on it

 

[jesus%E2%9D%A4%EF%B8%8Fandwantsthebest4u]

@resjudicata oh I am virtual I don't actually do field inspections, and the roof claims I handle are on the backend side after a field adjuster already inspected and wrote an estimate and Joe Blow Roofer comes in with a $30k supplement....

 

[jesus%E2%9D%A4%EF%B8%8Fandwantsthebest4u]

@johnredeemed103

 

[davelew86]

@perdedoras If you're filing a lawsuit, talk to the lawyer that you've hired.

 

[resjudicata]

@perdedoras Let's us know how that lawsuit goes..

 

[biblepeng]

@perdedoras Public adjuster

 

[glaigleman]

@perdedoras Ask your carrier to provide you a contractor who can do the work for the price quoted. Certain states require carriers to do so.

It is a tough lawsuit- the damages are very low so many attorneys won't be interested.

Also check out the appraisal provisions in your policy.