Dispute Over Third-Party Contractor Claim – Seeking Advice (PA)
I filed a third-party claim against my contractor for damages sustained to my property. They offered a settlement of $30,000, but their assessment only accounted for 5 out of the 85+ damaged items that I documented, and they didn’t perform a thorough inspection. According to my contractor’s estimates, the total damages far exceed six figures to bring the property up to code, with damages alone surpassing $120,000.
The contractor also performed work outside of the agreed-upon scope, such as cutting an unapproved hole in a wall that overlooks the family room from the second floor, and used faulty or unauthorized materials that were damaged due to improper storage (e.g., left outside in the rain).
A specific example includes tile damage in the kitchen, which is part of a cohesive material that extends through several areas on the main floor, including the laundry room, pantry, half bath, walk-in coat closet, and foyer. However, the report only addresses tile replacement in the kitchen, pantry, and laundry room, completely excluding the interconnected areas. The tile was only directly damaged in the kitchen, and when I inquired about this inconsistency, I was informed that the settlement offer had been deemed “full and final.”
We also have clear video evidence of multiple broken glass doors, yet they were omitted from the report without any explanation. When I asked about it, I was simply told, “this is full and final.”
Additionally, when the adjuster visited, he spent about two hours on-site but only about five minutes in the basement, where most of the damage occurred. He mentioned he would need to return after leaving for his child’s soccer game, but when I followed up, I was told a second visit was unnecessary.
It feels like they are not handling this claim in good faith. Since this is a third-party claim, they keep directing us to file with our homeowners insurance instead. Has anyone dealt with a similar situation? I would appreciate any advice on what steps to take next. (Located in PA for context.)
I’m sorry to hear you’re dealing with such a frustrating situation. It definitely sounds like the insurance company is not conducting a thorough investigation or acting in good faith based on your account. Here are some potential next steps you might consider:
Document Everything: Continue to keep meticulous records of all communications, estimates, and damage documentation. This includes photographs, emails, and any correspondence with the contractor and insurance adjuster.
Get a Detailed Estimate: You mentioned you have contractor estimates indicating much higher damages. It may be beneficial to obtain a detailed written estimate from a reputable contractor that itemizes all damages and repairs needed, including the unapproved work done by your contractor.
Request a Revisit: If you feel the insurance adjuster didn’t adequately inspect your property, you can formally request that they send someone else or have the adjuster return for a more thorough inspection. Emphasize the extent of the damages and the specific areas they may have overlooked.
Ask for a Supervisor: If the adjuster is not responsive, ask to speak to a supervisor or a claims manager. They might be more willing to address your concerns and could possibly authorize a more comprehensive investigation.
File a Complaint: If you continue to feel that the insurance company is not acting in good faith, you can file a complaint with the Pennsylvania Department of Insurance. They can investigate claims of unfair treatment.
Consider Legal Action: If the above steps do not yield results, you may want to speak with an attorney who specializes in insurance claims or construction disputes. They can provide legal advice tailored to your situation, including potential litigation against the contractor or the insurance company.
Consult Your Own Insurance: You mentioned being advised to file with your homeowners insurance. It might be helpful to discuss your situation with your own insurance agent to see if they can assist with the claim or provide guidance on how to proceed with the third-party claim.
Seek Mediation: If negotiations stall, mediation can be an effective way to resolve disputes without going to court. This involves a neutral third party who can help both sides reach an agreement.
It’s frustrating to navigate these situations, but staying organized and persistent is key. Good luck, and I hope you get the resolution you need!