I have a covered claim with my insurance. Had some water damage due to a busted pipe. Bottom half of kitchen is torn out. After the plumbing gets completely done this next week, my insurance said they are sending a contractor out to estimate the reconstruction cost. I know I don’t have to use them, but do I have to even let them do the estimate? My husband is a general contractor, so he will be doing the work. No field adjusters have been to my home and they aren’t sending one for the reconstruction estimate. What happens if my husband’s estimate is more? Which could be likely if it is underbid in the first place.
Unfortunately, your carrier will pay what they believe is fair and reasonable. Because contractor’s prices very, they usually send out a contractor in their network to estimate the damage. Most contractors working with the insurance companies use an estimating platform that the pricing is supposed to be updated monthly from the average prices in your area. Your insurance company will pay based off of those averages and the contractor’s scope.
The carrier may deny your claim if they cannot confirm the scope and pricing of your claim.
It is important to confirm the scope of work that was written by that contractor. You should walk with the carrier’s contractor to insure they see all damages and discuss the scope of work. If there are pricing disputes, I suggest getting three estimates and submit those to the carrier.
For more information about how to prepare an accurate scope of what was lost, please read our publication, The Scoop on “Scope” (of loss). Good luck!