Insurer Offering Around 10% of Repair Costs—Seeking Advice
I’m having a challenging experience with my homeowner’s insurance (Liberty Mutual) for the first time and would appreciate any guidance. Here’s the situation: A local appliance company installed a new appliance in my home and unfortunately made a mishap, resulting in water damage to my kitchen and significant damage to the finished room below. Although the appliance company provided their insurance details, I ended up filing a claim with my homeowner’s insurance after the initial water remediation revealed further damage, assuming they would handle the subrogation.
Right now, my kitchen wall is stripped down to the studs, with some cabinet boxes, trim, and the dishwasher removed and stored in my sunroom. The counter is precariously supported by a piece of scrap wood. I’ve also noticed minor gapping in the hardwood floor, but I’m hoping to avoid further complications. Meanwhile, the downstairs room has become uninhabitable; one wall is down to the studs, there’s no insulation (it’s an exterior wall), LVP flooring has been removed, and the ceiling has holes from the water remediation equipment.
I received a repair estimate of $25,000 from a local contractor (in a high-cost-of-living area, with my home valued close to $1 million). This estimate includes insulation, drywall, plastering, painting, baseboards, ceiling repair, and LVP flooring installation, but does not cover new cabinets or countertops.
My claim with Liberty has been in process for about eight weeks, and a field adjuster came out two weeks ago, but I haven’t heard anything since. The contractor has also reached out to Liberty for updates. Today, I received a call stating that the adjuster estimated $700 for kitchen repairs and $2,300 for the downstairs, totaling only $3,000. I understand this is just their initial offer, but it barely covers materials, much less labor, and there’s no guarantee that my custom cabinets and countertops will be restored to their original condition.
What are my options now? Should I cover the $20,000 out of pocket and then pursue legal action against the appliance company for restitution? I thought having homeowner’s insurance would protect me from these kinds of nightmares. On top of everything, I’m about to welcome a newborn in less than eight weeks with my home in disarray and no dishwasher (I know, first world problems). Any advice would be greatly appreciated.
I’m really sorry to hear about the difficulties you’re facing—dealing with water damage and insurance claims can be incredibly stressful, especially with a newborn on the way. Here are some steps you might consider taking to address the situation:
Review Your Policy: Start by reviewing your homeowner’s insurance policy to understand coverage limits and exclusions. Pay particular attention to sections that discuss water damage and repair costs.
Document Everything: Keep thorough records of all communications with your insurance company and the appliance company. Take photos of the damage, save emails, and document inspections or estimates you’ve received. This documentation will be crucial if you need to escalate the matter.
Request a Detailed Breakdown: Ask Liberty Mutual for a detailed breakdown of their adjuster’s estimate. Specifically, inquire why the estimated costs are so low compared to the contractor’s quote. Understanding their reasoning may help you formulate your response.
Get a Second Opinion: If possible, get a second estimate from another contractor to further substantiate your claim. This could reinforce your case when negotiating with Liberty Mutual.
Negotiate with Your Insurer: Present the additional contractor quotes and any other evidence you gathered to Liberty Mutual. Be persistent and articulate your case clearly—explain the extent of the damage and why their assessment falls short.
Consider a Public Adjuster: If you’re still having difficulty, you might want to hire a public adjuster. They are experts in navigating insurance claims and can advocate on your behalf for a fair settlement.
Explore Subrogation Options: Since the damage stemmed from the appliance company’s mistake, you might want to consider pursuing a claim against them directly, especially if the insurance company’s offer remains inadequate. Consult with a lawyer to explore your options.
Reach Out to Customer Service or an Ombudsman: If you’re getting nowhere, escalating the issue via customer service or reaching out to a state insurance ombudsman may produce results.
Be Prepared If You Need to Sue: If it comes to that point, speak with a lawyer about your situation, especially considering the potential costs and implications. They can provide specific legal advice tailored to your circumstances.
Remember to stay patient but persistent. Insurance claims can take time, and having a newborn may complicate the situation, but you do deserve adequate compensation for the damages you’ve incurred. Best of luck, and congratulations on the upcoming addition to your family!