Insurer Offering Only ~10% of Repair Costs: Seeking Advice
This is my first experience with homeowner’s insurance (Liberty Mutual), and it has turned into a real headache. I’m reaching out for guidance on how to move forward. Here’s the situation: a local company recently installed a new appliance in my home, but they messed up, causing significant water damage in my kitchen and extensive damage to the finished room below. The appliance company provided their insurance information, but once the initial water remediation revealed the full extent of the damage, I decided to file a claim with my homeowner’s insurance, expecting they would handle subrogation.
Currently, my kitchen is partially gutted, with the wall down to the studs, missing cabinet boxes, and even the dishwasher removed and sitting in my sunroom. Right now, the counter is precariously supported by a piece of scrap wood. I’ve noticed minor gaps in the hardwood floor, but I’m hoping to let that slide for now. Meanwhile, the area beneath the kitchen is unlivable; one wall is exposed to the elements, the flooring is gone, and there are holes in the ceiling from the remediation equipment. I received a repair estimate from a local contractor for $25k (in a high-cost-of-living area with a home value nearing $1 million). This estimate includes insulation, drywall, plaster, painting, baseboards, ceiling repair, new LVP flooring downstairs, reinstallation of existing cabinets, and plumbing work, but it doesn’t account for new cabinets or counters.
My claim with Liberty has been in progress for 8 weeks now, and a field adjuster visited about 2 weeks ago, but I haven’t heard anything since. The contractor has also been trying to get updates from Liberty. Today, I received a call from them stating that the field adjuster estimated just $700 for kitchen repairs and $2,300 for the damage downstairs, totaling only $3,000. While I understand this is just an initial offer, it barely covers materials, much less labor. Plus, there’s no assurance that my custom cabinets and counters will look the same post-repair.
What should I do next? Should I absorb the $20k upfront cost and pursue legal action against the appliance company to reclaim my losses? I thought having homeowner’s insurance would help me in situations like this, but it’s been incredibly frustrating. To add to the chaos, I’m expecting a newborn in less than 8 weeks and currently have a house in disarray and no dishwasher (I know, first-world problems!). Any advice would be greatly appreciated.
I’m sorry to hear about the frustrating situation you’re facing with your homeowner’s insurance. It sounds incredibly stressful, especially with a newborn on the way. Here are some steps you might consider taking:
Document Everything: Keep detailed records of all communications with Liberty Mutual, the contractor, and the appliance company. Take photos of the damage and any work done so far. This documentation will be crucial for any disputes that arise.
Request a Detailed Breakdown: Contact Liberty Mutual and ask for a detailed breakdown of how they calculated their estimates. This can help you understand their reasoning and identify any discrepancies.
Get Multiple Estimates: If you haven’t already, consider getting additional estimates from other contractors. This can provide you with a range of costs and strengthen your case when negotiating with the insurer.
Negotiate with Your Insurer: Armed with your contractor’s estimate and any additional quotes, go back to Liberty Mutual and negotiate. Highlight the discrepancies and the extent of the damage. Be persistent; sometimes, it takes multiple follow-ups to get a satisfactory response.
Consider a Public Adjuster: If negotiations aren’t yielding results, you might want to consider hiring a public adjuster. They work on behalf of policyholders to help negotiate claims with insurers and can often secure a more favorable settlement.
Consult a Lawyer: Given the potential for a lengthy claim process and possible litigation against the appliance company, consulting a lawyer experienced in insurance claims can be beneficial. They can provide guidance on your rights and the best course of action.
Explore Other Coverage Options: If you’re facing immediate costs and your claim is still unresolved, consider looking into personal loans or financial assistance to cover urgent repairs.
Communicate with the Appliance Company: Keep in touch with the appliance company about their liability and possible contributions to the repair costs. They may be willing to assist while the insurance process unfolds.
Stay Organized and Calm: With everything going on, it’s essential to stay as organized as possible and keep your focus on getting the repairs completed, especially with a newborn on the way.
While it feels like an uphill battle now, remaining persistent and informed can help you navigate this process more effectively. Good luck, and I hope you find a resolution soon!