Post-Loss Assignment in California Frederick Thomas asked 1 year ago
Post-Loss Assignment in California


I am located in California and worked with a restoration company on a covered water loss that damaged my kitchen. After they completed the remediation/demolition of the kitchen, I’ve discussed with the restoration company that I would like to retain their services for the reconstruction project. However, once they did the estimates (through Xactimate), they advised that they would not release the actual estimate figures unless I provide them with signed documents that include – Post Loss Assignment of Insurance Rights & Directions to Pay which “completely, irrevocably, and fully assign and transfer all my rights to the Contractor all of the Policyholders’ legal and equitable rights, title and interest under all insurance policies arising from claims for the damage Contractor was hired to address or collectively referred to as the Assigned Rights.” Do you think it’s a fair contract language? It sounds like I’m completely relinquishing my rights as a policyholder to this contractor. Thank you all for your advice.


1 Answers
Denise Sze Denise Sze Expert answered 1 year ago


Thank you for the question. Many contractors utilizing Xactimate for insurance bid purposes do not want to work for free and have you shop their estimate amongst other contractors to perform the work. That being said, it’s wise not to enter a contract without knowing what you are agreeing to pay. While many contractors working in the insurance industry have a standardized contract wanting to assign rights, if it were me personally, I would speak to the contractor and let them know you are basically uncomfortable with the language and that you feel you are contracting out of your rights with the carrier.

It’s something that is a personal choice but signing a contractor without knowing the bid price and giving up your rights with the carrier isn’t ideal.