In July 2023, our house suffered extensive hail damage. Our insurance company sent an adjustor who told us we needed to replace all of our windows due to the damage. We have aluminum clad casement windows with painted interior. We hired a restoration company to assist us. When our insurance company received the bid for our window replacements (quality is like for like) our insurance company decided to hire a 3rd party “expert” to reexamine the windows and determine what should be replaced. However, we were told the 3rd party “expert” was there to confirm the window quality replacement matched our current windows. The 3rd party “expert” determined some of the windows didn’t need to be replaced and instead could be re-clad. We have asked several contractors, lumber yards and window companies about re-cladding and everyone has said that is not a viable option. Our contractor and insurance adjuster are at odds and we are unsure of what our next step should be.
This sounds like a tricky situation and the answer may depend on the specific terms in your insurance policy as well as the terms of the agreement you made with the house buyers. Hopefully you have a written agreement with them requiring repairs to be completed in return for the lower price. Your insurance company may have a good argument supporting their request to receive receipts before you are reimbursed.
You can seek help from the Office of Public Insurance Counsel (https://www.opic.texas.gov/residential-property-insurance/get-help/) to see if they can provide help.