Water Damage Insurance Process Inquiry
Hello! I need some guidance on navigating the insurance process. I live in Toronto, Canada, and experienced a leak from our upstairs fridge that caused significant 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 arrive tomorrow to demolish the affected area, which we’ll have to pay for upfront. He advised us to keep all receipts since the insurance might cover those costs, but we’ve been paying out of pocket so far.
The adjuster said he would return after the demolition to evaluate the restoration costs. At that point, we can decide whether to use their recommended contractor or choose our own.
As someone in the construction industry with a network of trusted renovators, I’d prefer to hire my own contractor if the insurance approves. If I go this route, will the insurance release funds once the work starts, or will I need to pay out of pocket initially?
Thank you for your help!
Hi there! I’m glad you reached out for help with this situation. The insurance process can be a bit confusing, but here’s a general walkthrough of what to expect, particularly in your case in Toronto, Canada:
Claims Process: Since you’ve already reported the damage, had an adjuster visit, and started demo work, you’re on the right track.
Document Everything: Keep track of all receipts, photos of the damage, and any communications with the insurance company. This documentation will be crucial for your claim.
Choosing a Contractor: If you opt to go with your own trusted renovators, make sure to get a detailed estimate from them. Provide this estimate to your insurance adjuster for approval.
Insurance Approval: Once the insurance adjuster reviews and approves your contractor’s estimate, they may send you a formal approval or a confirmation.
Payment Process: Insurance companies typically don’t pay contractors directly unless they are working through insurance-approved contractors. If you choose your own contractor, you might have to pay for the work upfront and seek reimbursement from the insurer afterward. However, some insurance companies may agree to issue progress payments based on completed work milestones. Verify this with your adjuster.
Reimbursement: After you submit your contractor’s invoices and proof of payment, your insurance should reimburse you according to your policy coverage. This may take some time, so be prepared for a waiting period.
Communicate with Your Insurer: Stay in regular contact with your insurance adjuster for updates and to ensure you understand the next steps and payment timelines.
Make sure to clarify all payment details with your insurance directly, as policies and procedures can vary widely. Good luck, and I hope your home is restored smoothly!