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Insurance Claim: Contractor Wants to See Insurance Estimate Before Bidding
Posted on 6/21/19 at 3:26 pm
Posted on 6/21/19 at 3:26 pm
Water damage claim on my homeowner's policy. Insurance will be sending the adjusters report with estimate on Monday. We started calling contractors today to get bids on job so we can get started ASAP once the insurance estimate comes back.
Contractor came out and said he couldn't bid without seeing the insurance estimate and what the adjuster has detailed for scope of work. I'm a little leery of doing this.
is this a common practice? does it benefit me at all to do it this way? I'm fully aware insurance will most prob low-ball the estimate and we'll have to file a supplemental claim.
we're talking every bit of flooring in house coming up (90% solid hardwood), repairing or replacing subfloors, removing baseboards, lower cabinetry, door frames, appliances, toilets, tile shower etc and putting back not to mention items accidentally getting damaged upon removal.
Contractor came out and said he couldn't bid without seeing the insurance estimate and what the adjuster has detailed for scope of work. I'm a little leery of doing this.
is this a common practice? does it benefit me at all to do it this way? I'm fully aware insurance will most prob low-ball the estimate and we'll have to file a supplemental claim.
we're talking every bit of flooring in house coming up (90% solid hardwood), repairing or replacing subfloors, removing baseboards, lower cabinetry, door frames, appliances, toilets, tile shower etc and putting back not to mention items accidentally getting damaged upon removal.
9
Posted on 6/21/19 at 3:28 pm to SirSaintly
Submit it with any financial information removed. He wanted it for the scope of work, after all.
Posted on 6/21/19 at 3:28 pm to SirSaintly
redact the prices, make him quote based on the scope
Posted on 6/21/19 at 3:29 pm to SirSaintly
quote:
Contractor came out and said he couldn't bid without seeing the insurance estimate and what the adjuster has detailed for scope of work. I'm a little leery of doing this.
As long as the estimate is redacted so it doesn't reveal the amount, and only reveals the items approved to repair/replace...then that shouldn't be a problem.
Posted on 6/21/19 at 3:30 pm to SirSaintly
I'm no expert but I did have to rebuild my house after Katrina. One contractor came in and said the same, "let me see your insurance settlement" before even looking at the house. In my opinion all that would do is have him mold his quote and work to what $$ amount he sees on paper.
I would think that having a quote based on the actual work needed first would be more objective.
If your insurance covers that--great. But I wouldn't feel comfortable with the contractor making that decision for me either.
I would think that having a quote based on the actual work needed first would be more objective.
If your insurance covers that--great. But I wouldn't feel comfortable with the contractor making that decision for me either.
Posted on 6/21/19 at 3:31 pm to lnomm34
if you follow Inmomm34’s advice please video the meeting and post it. I want to see the contractors face and what his next BS move is going to be.
Posted on 6/21/19 at 3:42 pm to SirSaintly
It’s extremely commonplace, and doesn't expose you at all. If you trust the contractor to do the job the right way, it takes a lot off of your plate. You don’t have to mess with multiple bids or any of that. Showing them what your adjuster wrote for allows them to start the supplement process for you, and will expedite the claim.
Your adjuster won’t lowball necessarily, they use a program called xactimate that your contractor will also use with the same price sheet for your location and the month. So ultimately it’s redundant to make the contractor do it too.
Your deductible is all you’re responsible for, and protects you from the contractor inflating the claim. If your deductible is paid, and insurance doesn’t approve something they had done as a covered loss, that’s on the contractor, not you.
Good luck man, water losses suck.
Your adjuster won’t lowball necessarily, they use a program called xactimate that your contractor will also use with the same price sheet for your location and the month. So ultimately it’s redundant to make the contractor do it too.
Your deductible is all you’re responsible for, and protects you from the contractor inflating the claim. If your deductible is paid, and insurance doesn’t approve something they had done as a covered loss, that’s on the contractor, not you.
Good luck man, water losses suck.
Posted on 6/21/19 at 3:44 pm to SirSaintly
Like others have said, redact the price.
He just wants to know the exact scope so that it’s apples to apples instead of him quoting and missing something and being screwed later. Covers all parties so that the exact repairs are understood among all parties.
He just wants to know the exact scope so that it’s apples to apples instead of him quoting and missing something and being screwed later. Covers all parties so that the exact repairs are understood among all parties.
Posted on 6/21/19 at 3:44 pm to SirSaintly
I'm a property adjuster and I deal with this all the time. There is no reason to share any info with the contractor up front if you don't want to. If he's a good restoration contractor who performs insurance related repairs, he should have no problem providing an accurate and independent scope.
However, he may be a good guy to have on your side if the carriers adjuster put together a half-arse estimate. If you're hoping the contractor can work for less while offsetting a portion of your deductible...the process will drag out for a while.
Sounds like a big loss, I would probably provide scope and pricing to the contractor in your case. And if I'm in the contractors shoes I would bail out if the home owner started playing games.
However, he may be a good guy to have on your side if the carriers adjuster put together a half-arse estimate. If you're hoping the contractor can work for less while offsetting a portion of your deductible...the process will drag out for a while.
Sounds like a big loss, I would probably provide scope and pricing to the contractor in your case. And if I'm in the contractors shoes I would bail out if the home owner started playing games.
Posted on 6/21/19 at 4:05 pm to Apache
quote:
Sounds like a big loss, I would probably provide scope and pricing to the contractor in your case. And if I'm in the contractors shoes I would bail out if the home owner started playing games
they seem like good people and he did say they would deal with the insurance company for supplemental work that needed to be done. I just want it done right and not at an over-inflated price since they know insurance is covering minus 1% deductible. I'm not looking to make money on this claim. just want to be back in my home and it in the same condition it was pre water damage (pinhole leak in copper pipe in crawlspace)
Posted on 6/21/19 at 4:11 pm to SirSaintly
I’ve been through this before with a busted water heater valve - on the top, so it sprayed water out 360 degrees all night long. Woke up to 2” all over the house.
My contractor was one I very much trusted. I gave him the estimate and he worked with us and the adjuster. Being a good dude, he was able to work a lot of upgrades in at no cost. Mostly though that’s because the insurance company was very fair.
You mentioned bottom cabinets - it’s almost impossible to match just right with top unless they are very much new. Also, counter tops almost always break when the bottom comes out.
My contractor was one I very much trusted. I gave him the estimate and he worked with us and the adjuster. Being a good dude, he was able to work a lot of upgrades in at no cost. Mostly though that’s because the insurance company was very fair.
You mentioned bottom cabinets - it’s almost impossible to match just right with top unless they are very much new. Also, counter tops almost always break when the bottom comes out.
Posted on 6/21/19 at 4:13 pm to SirSaintly
Sounds like you are on the right track. Claims can be a scary experience. If your adjuster was local, he probably knows the contractor anyway. I usually like open lines of communication between all parties involved, as it just makes things move quicker and more smoothly. Good luck to you.
Posted on 6/21/19 at 4:28 pm to SirSaintly
Give the contractor the estimate with the unredaced prices. If the contractor has Xactimate, he has the pricing anyway, there is no reason to withhold it from him.
You will have deprecation withheld on the claim. Let’s say the total estimate was $25,000- $1000 deductible, and $5000 of depreciation withheld that you get back when the work is completed, if you spend the money. First check is $19,000.
Let’s say you work real hard and find someone to do the work for $22k, the insurance isn’t going to send you the entire $5k they will send $2k, and the contractor will have probably cut corners to do the work for $22k instead of $25k.
The prices from Xactimate are market prices per zip code for the entire country updated monthly. Withholding will created more trouble for yourself.
You will have deprecation withheld on the claim. Let’s say the total estimate was $25,000- $1000 deductible, and $5000 of depreciation withheld that you get back when the work is completed, if you spend the money. First check is $19,000.
Let’s say you work real hard and find someone to do the work for $22k, the insurance isn’t going to send you the entire $5k they will send $2k, and the contractor will have probably cut corners to do the work for $22k instead of $25k.
The prices from Xactimate are market prices per zip code for the entire country updated monthly. Withholding will created more trouble for yourself.
Posted on 6/21/19 at 4:34 pm to SirSaintly
Ask the adjuster for a scope only copy. Their software can do that.
Posted on 6/21/19 at 4:37 pm to lnomm34
quote:
Submit it with any financial information removed. He wanted it for the scope of work, after all.
This. Defining the scope of work will eliminate him including things you don’t need or the insurance isn’t going to pay for. Saves you time.
Never give a contractor your estimate. If you do His bid will be just under the estimate you get from the insurance. I guarantee it.
This post was edited on 6/21/19 at 4:38 pm
Posted on 6/21/19 at 4:39 pm to wickowick
Also if the estimate has $135lf for cabinets and your contractor sees you have more expensive cabinets, that can then be brought to the attention of the adjuster. If you don’t share the prices the contractor can’t compare the two to make sure him and the adjuster are comparing apples to apples.
Posted on 6/21/19 at 4:43 pm to wickowick
Your adjuster can print out an estimate with prices redacted. If you carry 80% coverage to the value, you will get the deprecation back. If your coverage is $250 k , ne deductible
Posted on 6/21/19 at 4:46 pm to wickowick
Wick is in with the correct answer. Your best bet is to go with a reputable mitigation contractor, not the lowest bid. Chances are, anyone that submits a low bid doesn't do much, if any, insurance work. And a good contractor will do what is necessary, not necessarily what the adjuster scoped. And he knows how to work with the adjuster to make sure your expenses are covered.
Posted on 6/21/19 at 5:13 pm to Dusty Bottoms
This.
I had a guy I trusted and I handed everything over. Within ten minutes he was identifying things the adjuster missed. He called and got the adjuster over there and politely pointed things out. “You didn’t list the trim and quarter round.” The adjuster added all the stuff the contractor pointed out and saved my arse.
quote:
And a good contractor will do what is necessary, not necessarily what the adjuster scoped. And he knows how to work with the adjuster to make sure your expenses are covered.
I had a guy I trusted and I handed everything over. Within ten minutes he was identifying things the adjuster missed. He called and got the adjuster over there and politely pointed things out. “You didn’t list the trim and quarter round.” The adjuster added all the stuff the contractor pointed out and saved my arse.
Posted on 6/21/19 at 5:47 pm to SirSaintly
quote:
I'm not looking to make money on this claim.
Nor should you be.
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