Insurer Offering Only 10% of Repair Costs
I’m navigating my first experience with homeowner’s insurance (Liberty Mutual), and it’s been quite the struggle. I’m looking for some guidance on how to move forward. Here’s the background: a local company installed a new appliance for me, but they messed up, resulting in water damage to my kitchen and significant damage to the finished room directly below. While the appliance company provided details for their insurer, I opted to file a homeowner’s insurance claim after the initial water remediation revealed the full extent of the damage, thinking they would handle the subrogation.
Right now, my kitchen is a disaster. One wall is down to the studs, and I’ve removed some cabinet boxes, trim, and my dishwasher, which is now in my sunroom. The counter is precariously supported by a piece of scrap wood, and there are minor gaps appearing in the hardwood floor—though they’re usually hidden from view, I’m hoping to let that be for now. The room beneath the kitchen is unlivable; one wall is bare with no insulation (it’s an exterior wall), the LVP flooring has been ripped out, and there are ceiling holes from the water remediation equipment. A local contractor provided me with a repair estimate of $25k, which includes insulation, drywall, plaster, paint, baseboards, ceiling repairs, new LVP flooring below, reinstallation of existing cabinet boxes, and plumbing, but it does not cover new cabinets or countertops.
My claim with Liberty has been pending for 8 weeks now. A field adjuster visited two weeks ago, but since then, I’ve heard nothing. The contractor has also been following up with Liberty for updates. Today, I received a call from Liberty stating that the field adjuster estimated repairs at $700 for the kitchen and $2300 for downstairs—totaling just $3k. I realize this is just an initial offer, and I expected to face some out-of-pocket expenses, but this amount barely covers materials, let alone labor. Plus, I’m concerned there’s no assurance that my custom cabinets and counters will remain intact.
Where do I go from here? Should I front the $20k in repairs and potentially sue the appliance company to recover my losses? I thought having homeowner’s insurance would alleviate these kinds of headaches, but it’s turning into a real nightmare. And to make matters more complicated, I’m expecting a newborn in less than 8 weeks while dealing with this situation and living without a dishwasher (I know, first-world problems).
I’m really sorry to hear about your situation—it sounds incredibly frustrating, especially with a newborn on the way. Here are some steps you can consider taking:
Review your Policy: Go through your homeowner’s insurance policy carefully to understand what is covered and what the claims process entails. It might also help to check if there are any specific provisions for water damage and what your rights are in terms of disputes with the insurer.
Document Everything: Make sure you have detailed records of all communications with Liberty Mutual and the appliance company. Keep copies of your repair estimates, photographs of the damage, and any correspondence related to your claim. This documentation will be crucial if you need to escalate the situation.
Request a Detailed Explanation: Contact Liberty Mutual to ask for a detailed breakdown of their offer. Inquire how the field adjuster derived those figures—specific itemization can help you understand where the discrepancies lie. If they missed any aspects of the damage, be sure to point that out.
Get a Second Opinion: You might want to get another estimate from a different contractor. This could help bolster your case when negotiating with the insurance company. They might be more willing to reconsider if presented with multiple viewpoints on the repair costs.
Consider Professional Help: It may be beneficial to hire a public adjuster who can negotiate with your insurance company on your behalf. They can leverage their expertise to help maximize your claim.
Subrogation Process: Since the appliance company is at fault, it would be worth pursuing them for damages directly after your repairs are done (if necessary). This can sometimes be a lengthy process, so you might want to begin gathering information now.
Escalate the Claim: If you feel Liberty is not handling your claim appropriately, consider escalating the matter to a supervisor or filing a complaint with the state insurance commissioner’s office.
Explore Temporary Solutions: Given that you have a newborn on the way, try to find a temporary solution for your kitchen, even if it’s not ideal. Look into rental options for some basic kitchen appliances if needed.
Stay Persistent: Insurance claims can be a long, drawn-out process. Stay diligent and keep following up consistently.
Lastly, remember, you aren’t alone in this process. Many homeowners face similar challenges, and resources are available to support you through the claims process. Best of luck, and I hope your home is back in order soon!