What Are My Options If My Homeowner’s Insurance Company’s Contractor Damaged My Home during Repairs?

There once was a time when homeowners could choose their own contractor to repair a roof leak, mold outbreak or other damage. The insurance company would then reimburse these costs.

Although some homeowner’s insurance providers still offer this option, many companies have clued into the fact that they can increase their profits by including a “managed repairs” clause in their contracts.

Put simply, the term “managed repairs” indicates that your insurance provider will choose the contractor to restore your home, or let you choose from a limited list of contractors. Ultimately, this saves the insurance company money because it can choose a low-cost contractor who may use low-quality materials.

Unfortunately, you – the homeowner – are frequently the loser here because budget materials and cut-corner repairs don’t last as long and may not place you back in the position you were in prior to your insured loss. What’s more, low-priced contractors may not have the same level of experience as their more expensive competitors or may use less qualified help, so they are may be more likely to damage your property.

It is important to note that when an insurance provider invokes a “right to repair” that creates a new contract that they are responsible for just like they are for the insurance contract itself.

The insurance company must put you back in an equal or greater position you were in before you sustained the covered loss.  If your home was damaged by an incompetent contractor, or if the repairs are of unreasonably low quality, then you should contact an insurance claims attorney immediately. If the incident happened in Florida, turn to Leader & Leader P.A.

Michael D. Leader is an insurance claims lawyer in Fort Lauderdale who will evaluate your situation and explain your legal options. Call 954-523-2020 to schedule a free consultation.

Let’s take a closer look at the regulations related to managed repair insurance companies:

Can I Recover Compensation from My Homeowner’s Insurance Company after Botched Repairs?

If a homeowner’s insurance company allows the policyholder to choose a contractor, and then reimburses the policyholder for the repair expenses, then the claim typically ends when the policyholder receives the compensation. However, this is not the case when dealing with a managed repair insurance company.

There are many situations when a managed repair insurance company or contractor is liable for damages after completing a repair project. These include:

• The work was not properly permitted;
• The contractor caused damage during repairs;
• The materials used to repair the property were of much lower quality than the original materials;
• Or the property was not restored to its pre-loss condition.

The final two points are common causes of post-repair claims. If your insurance company’s contractor uses low-quality materials or does not restore your property to its pre-loss condition, then you might face thousands of dollars in repairs down the line.

Any property owner who works with a managed repairs insurance company would be wise to have their restoration inspected by a third party. This is particularly important if you are not familiar with the work and materials involved in your repairs.

If your insurance company provided unreasonable repairs to your home, contact Leader & Leader P.A. Michael D. Leader is an insurance claims attorney in Fort Lauderdale who knows the tactics that insurers use to cheat their policyholders, and he will fight for fair compensation on your behalf. Call 954-523-2020 to schedule a free consultation.