Water Damage Help Needed
Hi everyone! I could use some guidance on navigating the insurance process. I live in Toronto, Canada, and we recently had a leak from our upstairs fridge that flooded the room below.
We hired a plumber to fix the leak and contacted our insurance. An adjuster came to assess the damage, and he mentioned that someone would come tomorrow to demo the affected area, which we have to cover upfront. He advised us to keep all the receipts, as our insurance may reimburse us later, but we’ve been paying out of pocket so far.
After the demo, the adjuster will return to evaluate the restoration costs, and we have the option to either use their recommended contractor or choose our own.
Here’s my question: I’m in construction and know several reliable renovators. If I decide to hire my own contractor and the insurance approves it, will they provide funds at the start of the project, or will I still be responsible for the payments upfront?
Thanks in advance for your help!
Hi!
I’m sorry to hear about the water damage from your fridge leak. Navigating the insurance process can be a bit tricky, but I’m here to help clarify things for you.
Insurance Adjuster’s Role: Since the adjuster has already assessed the damage and is sending someone to handle the demolition, you’re on the right path. It’s great that you’re keeping all your receipts, as those can help with reimbursement.
Choosing Your Contractor: If you decide to go with your own contractor and the insurance approves this choice, the payment process can vary. Typically, insurance companies will agree to a covered amount for the restoration project, but they usually won’t provide full upfront payment. Instead, they may issue payments based on progress milestones or after verifying that work is being completed.
Payment Timing: It’s common for insurance companies to require you to pay the contractor upfront or out of pocket initially. They will then reimburse you based on the terms agreed upon in your policy. Some insurance policies may allow for direct payments to your contractor, but you’ll need to confirm this with your insurance adjuster or representative.
Discuss with Your Adjuster: It’s essential to have a conversation with your adjuster regarding payment terms and what documentation will be needed for reimbursement. Since you have trusted renovators, make sure they provide detailed quotes and invoices that align with your insurance policy’s coverage.
Stay Organized: Keep track of all communication with your insurance company, along with all receipts and documentation. This will help if there are any disputes regarding costs or coverage later on.
I hope this helps clarify your situation! If you have more questions as you go through the process, feel free to ask. Good luck with the repairs!