Insurer offering around 10% of repair cost
I’m navigating my first experience with homeowner’s insurance (Liberty Mutual), and it’s proving to be quite a challenge. I would appreciate any guidance on how to move forward. Here’s the situation: A local company installed a new appliance in my home, but they messed up, resulting in water damage to my kitchen and severe damage to the finished room below. After getting the appliance company’s insurance details, I decided to file a claim with my homeowner’s insurance once the extent of the damage was revealed during initial water remediation, thinking they would take on subrogation.
Right now, my kitchen wall is down to the studs, with some cabinet boxes, trim, and the dishwasher piled in my sunroom. I’m propping up the counter with scrap wood. There are minor gaps appearing in the hardwood floor that’s usually hidden, so I’m hoping it holds up. Below the kitchen, the room is unlivable; one wall is exposed with no insulation, the LVP flooring has been taken out, and there are holes in the ceiling from the water remediation equipment. A local contractor estimated repairs at $25,000 (in a high-cost area, with my home nearing $1 million in value). This includes costs for insulation, drywall, plaster, paint, baseboards, ceiling repair, new LVP flooring for downstairs, reinstallation of existing cabinet boxes, and plumbing work, but does not account for new cabinets or countertops.
My claim with Liberty Mutual has been processing for 8 weeks, and a field adjuster visited 2 weeks ago, but I’ve had no updates since. The contractor has also reached out to Liberty for news. Today, Liberty informed me the adjuster calculated the kitchen repair at $700 and the downstairs at $2,300, totaling only $3,000. While I recognize this is just an initial offer, it doesn’t cover the material costs, let alone labor. Plus, there’s no guarantee my custom cabinets and countertops will survive this ordeal.
What are my next steps? Should I cover the $20k upfront and pursue a lawsuit against the appliance company to recoup my losses? I thought homeowner’s insurance was supposed to help in these situations, but this has turned into a nightmare. To add to the stress, I’m expecting a newborn in less than 8 weeks, with my house in disarray and no dishwasher (I know, first world problems).
I’m really sorry to hear about your situation—dealing with insurance claims can be incredibly frustrating, especially when you’re also preparing for a new baby. It sounds like you’ve been through a lot already. Here are some steps you can take to move forward:
Review Your Policy: Start by carefully reviewing your homeowner’s insurance policy. Look for sections related to coverage limits, subrogation, and any obligations you might have in terms of proof of damage or contractor estimates.
Document Everything: Keep detailed records of your correspondence with Liberty Mutual and any estimates or communications from your contractor. Take photos of the damage, work done so far, and any receipts for expenses you’ve incurred related to this incident.
Challenge the Adjuster’s Estimate: If you feel the adjuster’s assessment is unfairly low, consider formally disputing it. You can provide your contractor’s estimate and any evidence of comparable repair costs in your area to support your case.
Communicate with Your Contractor: Keep your contractor in the loop about the conversation with Liberty. They may have experience dealing with insurance companies and can provide you with recommendations on how to proceed or assist with documentation.
Consider Hiring a Public Adjuster: If the situation doesn’t improve, you might want to consider hiring a public adjuster, who works on behalf of homeowners to negotiate claims with insurance companies. They can sometimes help recover costs that the initial adjuster misses.
Reach Out to the Appliance Company: Since the appliance company caused the damage, you should follow up with them or their insurance about the situation. They may be responsible for part of the costs due to their negligence, even if you’re having to deal with your homeowner’s insurance first.
Explore Legal Options: If necessary, consult a lawyer about your situation. They can help you understand if suing the appliance company is a viable option or if there are alternative routes you can take.
Stay Persistent: It’s frustrating, but persistence is key in these situations. Keep following up with Liberty Mutual, your contractor, and the appliance company. Sometimes just staying on their radar can lead to better outcomes.
Manage Immediate Needs: Given that your home is not in a livable state, you may need to explore temporary measures. If finances are tight, some community organizations or local charities may offer assistance for families in need, especially with a newborn on the way.
Prepare for the Baby: Lastly, as overwhelming as all this is, be sure to give yourself some grace. Prioritize what needs to be done before the baby arrives, and lean on friends or family for support.
I hope this helps, and I wish you the best of luck in getting everything resolved quickly!