Third-Party Contractor Claim Dispute: Seeking Guidance (PA)
I need some advice regarding my third-party claim against my contractor for damages to my property. The contractor has offered a settlement of $30,000, but they’ve only listed five out of the 85+ documented damaged items and failed to conduct a thorough inspection. My own estimates indicate that the total damages could exceed six figures to bring the property back up to code, with property damage alone estimated at over $120,000.
Moreover, the contractor did work outside of the agreed scope, such as cutting an unapproved hole in a wall overlooking the family room from the second floor, and used faulty or unapproved materials that were damaged due to improper storage (left outside in the rain).
For instance, they damaged tiles in the kitchen—tiles that are part of a cohesive design flowing through other areas like the laundry room, pantry, half bath, walk-in coat closet, and foyer. However, the current report only covers tile replacement for the kitchen, pantry, and laundry room, completely omitting the connected spaces. The direct damage occurred only in the kitchen, so I questioned this exclusion, and they simply stated that the settlement offer was “full and final.”
Additionally, we have clear video evidence showing multiple broken glass doors, yet these were also excluded from the report without any explanation. When I inquired, I received the same “full and final” response.
Another concern is that when the adjuster visited, he spent about two hours on-site but only five minutes in the basement, where most of the damage occurred. He mentioned needing to leave for his child’s soccer game and indicated he might need to return. However, when I followed up, I was told a second visit wasn’t necessary.
It feels like they are not acting in good faith. Since this is a third-party claim, they keep directing us to file with our own homeowners’ insurance. Has anyone encountered a similar situation? I would appreciate any advice on how to proceed. (For reference, I’m located in PA.)
I’m sorry to hear about the issues you’re facing with the contractor and the insurance claim process. It certainly sounds frustrating, especially given the extent of the damages and the lack of thorough attention from the adjuster. Here are some steps you might consider:
Document Everything: Make sure you have comprehensive documentation of all the damages, including photos, videos, and written descriptions of each item affected. Organize everything clearly, possibly even categorizing items into those that were damaged and those that were affected indirectly.
Seek a Second Opinion: It may be beneficial to hire an independent adjuster or a property damage consultant to assess the damages. They can provide a more accurate estimate of the total costs to repair or replace everything. This could help solidify your case against the contractor and support your claim.
Respond to the Settlement Offer: Clearly communicate to the contractor’s insurer that the settlement offer is insufficient. Reference the extensive damages you have documented and explain why the current offer does not cover your losses. Make it clear that you are seeking a fair resolution and that you are prepared to take further action if necessary.
Involve Legal Counsel: If the contractor and his insurance company continue to resist a fair settlement, it may be worthwhile to consult with a lawyer who specializes in construction disputes or insurance claims. They can help you understand your rights and may assist in negotiating a better settlement or taking legal action if necessary.
Consider Filing with Your Homeowners Insurance: Even if the contractor is pushing back, depending on your policy, your homeowners insurance may provide coverage for the damages. However, this might also lead to higher premiums, so weigh that option carefully.
File a Complaint: If you believe the contractor is acting in bad faith or not adhering to contractual obligations, consider filing a complaint with the Pennsylvania state licensing board or the Better Business Bureau. This can sometimes prompt a quicker resolution.
Mediation or Arbitration: If negotiations stall, you may want to consider mediation or arbitration as a way to resolve the dispute without going to court. Check whether your contract includes a clause for alternative dispute resolution.
Be Prepared for a Long Process: Unfortunately, claims and disputes like this can take time. Stay persistent in following up and advocating for your rights throughout the process.
Remember to keep all communication in writing, so you have a clear record of your interactions. Good luck, and I hope you can reach a satisfactory resolution soon!