Questions About Homeowners Insurance Claim Payouts
We purchased a new construction home at the end of 2021. Recently, we discovered a soft, spongy area on the LVP flooring in one corner of the living room. Upon inspecting the crawl space, I found a pinhole leak in a water line that was spraying water onto the insulation and subfloor. To address the damage, a 5’x5’ section of the LVP was removed. My insurance company then sent a contractor who informed us that all of the LVP flooring in our home would need to be replaced, as the specific material is no longer available. They provided an estimate of $19,000.
We have since received a check for part of that amount, but it does not include the depreciation. After doing some research, I found two bundles of the discontinued LVP flooring at a local store. Am I allowed to patch that section myself and keep the insurance payout? I’m curious because the insurer based their compensation on a contractor’s estimate for replacing all the flooring, which I wouldn’t be doing.
Yes, you can absolutely patch in that section of flooring yourself using the material you’ve found, and there’s a possibility of keeping the insurance payout as well. However, there are a few important factors to consider:
Insurance Policy Terms: Review your homeowners insurance policy to understand how it handles claim payouts. Some policies might have specific stipulations about DIY repairs or using materials sourced independently.
Communication with the Insurance Company: It’s best to inform your insurance company about your plans to repair the floor yourself using the discontinued LVP. Transparency is crucial, as they might have specific guidelines regarding the claim process.
Depreciation Considerations: The amount you’ve been paid might have included depreciation based on the contractor’s estimate. If you choose to do the work yourself and can complete the repair for less than the original estimate, you might have grounds to discuss the remaining payout or reimbursement for the actual cost incurred.
Documentation: Keep detailed records of the repairs you make, including receipts for the LVP flooring and any materials used, along with photographs of the before and after. This will be helpful if you need to provide proof or if there are any discrepancies later on.
Consult with the Contractor: If the insurance company had a contractor assess the damage, it may be helpful to consult with them to ensure that your repairs will meet the necessary standards and won’t cause further issues down the line.
Ultimately, while you can patch the section yourself and potentially keep the payout, it’s advisable to confirm these steps with your insurance company to avoid complications.