Dispute Over Third-Party Contractor Claim – Seeking Guidance (PA)
I need some advice regarding a dispute I’ve entered with a third-party contractor following damages to my property. I filed a claim against them, and they proposed a settlement of $30k. However, their assessment only included five out of over 85 documented damaged items and did not include a comprehensive inspection of the property.
Based on estimates from my contractor, total damages are significantly higher, amounting to six figures to bring the property up to code, with direct damages alone surpassing $120k. Additionally, the contractor undertook unauthorized work, such as cutting an unapproved hole in a wall overlooking the family room from the second floor, and they used faulty or unapproved materials that were also damaged due to improper storage (exposed to rain).
For instance, tile was damaged in the kitchen, which is part of a cohesive flooring material that extends through multiple areas of the main floor, including the laundry room, pantry, half bath, walk-in coat closet, and foyer. However, the assessment only addresses the kitchen, pantry, and laundry room, ignoring the other connected spaces completely. Although only the kitchen tile was directly damaged, when I inquired about this oversight, I was told the settlement was “full and final.”
We also have clear video evidence of multiple broken glass doors, yet they were omitted from the claim report without explanation. When I raised this issue, the response was the same: “this is full and final.”
Another concern arose when the adjuster visited our property. He spent about two hours on-site, but only a mere five minutes in the basement, where most of the damage exists. He mentioned needing to hurry for his child’s soccer game and suggested he might return, but later I was informed that a second visit was deemed unnecessary.
I feel that they are not acting in good faith. Since this is a third-party claim, they keep referring us to file with our homeowners insurance. Has anyone experienced something similar? I would greatly appreciate any advice on how to proceed. (For reference, I’m located in PA.)
It sounds like you’re dealing with a frustrating situation, and your concerns are valid given the circumstances. Here are some steps you might consider taking in response to the contractor’s claim and settlement offer:
Review the Documentation: Compile all your evidence, including your documentation of the over 85 damaged items, photographs, video evidence of the damage, and any correspondence with both the contractor and the insurance company. Organizing this information can strengthen your case.
Obtain a Comprehensive Estimate: If you haven’t already, consider getting a detailed estimate from a reputable contractor or appraiser that accounts for all of the damaged items and necessary repairs, including the costs to restore the property to code and replace affected materials.
Request a Re-evaluation: Formally request that the insurance company conduct a re-evaluation of your claim, emphasizing the discrepancies in their report and the additional evidence you have. Mention the incomplete inspection and the fact that critical damage was omitted.
Contact the State Insurance Department: If you believe the insurance company is not acting in good faith, you can file a complaint with the Pennsylvania Insurance Department. They may provide assistance or guidance regarding your claim.
Consider Legal Counsel: Depending on the complexity of your case and the contractor’s response, it might be worth consulting with an attorney who specializes in insurance claims or construction disputes. They can help you understand your legal options and whether litigation is warranted.
Negotiate: If communication with the contractor or their insurance continues to be frustrating, you may want to consider negotiating a higher settlement based on the comprehensive evidence you’ve gathered. Be clear about your timeline and expectations.
Explore Mediation or Alternative Dispute Resolution (ADR): Sometimes a neutral third party can help facilitate a settlement. This could be a good option if you want to avoid litigation.
File a Claim with Your Homeowners Insurance: If the third-party contractor’s claim continues to be unresponsive, filing a claim with your own homeowners insurance may be necessary. They might then pursue the contractor’s insurance for reimbursement.
Keep Detailed Records: Maintain meticulous records of all communications and interactions going forward. This documentation can be crucial if the matter escalates.
It’s important to stay persistent in advocating for your rights and to ensure that all your damages and claims are appropriately acknowledged and compensated. Good luck!