Water Damage Help Needed
Hello! I’m hoping to get some guidance on the insurance process. I live in Toronto, Canada, and recently experienced a leak from our upstairs fridge that caused flooding in the room below.
We hired a plumber to fix the leak, and after contacting our insurance, an adjuster came to assess the damage. He mentioned that someone would come tomorrow to begin the demolition work, which we have to cover upfront. He advised us to keep all receipts since there’s a chance the insurance may reimburse us, but we’ve been paying for everything ourselves so far.
After the demolition, the adjuster will return to evaluate the costs for restoration, at which point we can decide whether to go with their contractor or choose our own.
I’m in the construction field and have several trusted renovators. If I opt for my own contractor and the insurance approves, will they provide the funds as soon as the work begins, or should I expect to pay out of pocket initially?
Thank you for your assistance!
Hi there! I understand how stressful dealing with water damage and insurance can be. Here’s a general process you can expect based on your situation:
Initial Approval: After the adjuster evaluates the damage and agrees on the scope of work, they should provide a coverage estimate for the restoration costs, including both your contractor and any additional related expenses.
Choosing Your Contractor: Since you have trusted renovators, you can certainly opt to use your own contractor. Just ensure that your contractor is properly licensed and insured, as your insurance company may require this.
Payment Process: When working with your own contractor, payment terms can vary:
Reimbursement: More often, you’ll be required to pay your contractor upfront and submit receipts for reimbursement after the work is completed.
Timing: If your insurance covers restoration costs, they typically won’t release funds until they’ve confirmed the work has been completed satisfactorily, even if you choose your own contractor. It’s important to discuss this process with your adjuster to understand how they handle payments.
Documentation: Keep all receipts and documentation of the work done, as these will be essential for your claim.
I recommend communicating directly with your adjuster to clarify how payment will work if you choose to go with your own contractor. They’ll provide the specifics based on your policy and their processes. Good luck with the repairs!