On a recent Friday, I was just getting ready to leave my office when the phone rang. I picked it up and heard the upset voice of a client who had been in a home just 10 months. The client had experienced a flood in the home and had no idea what to do with the few inches of water that was everywhere.
We quickly went into action, dispatching help and arriving onsite to assist the homeowner. The flood was not a construction-related issue, but it clearly caused our client a good deal of stress and probably $15,000 or more in damages.
Fortunately the client is insured, and the repairs will be covered. But something I had not considered much in the past came to mind as a result of this incident.
In a home less than a year old, built just the way they wanted and with many upgrades, insurance will pay for the repairs. But will the insurance company pay for the contractor of the client’s choosing, or will the contractor be dictated by the insurance company?
When building or remodeling, most people take great care to choose the contractor that is right for them and their project. No one would choose a contractor simply because their insurance company named it.
So this really begs the question: Do you know what your insurance would cover? And would you be allowed to use a contractor of your choice, or would you be limited to what the insurance company allows?
This question is more about your freedom to choose the right person for the job, and not meant to insinuate that any approved contractors that your insurance might recommend are not quality companies — there are many! It is more about knowing what could happen, and what your options would be before you end up in a situation you can’t do much about.
In the meantime, our clients were waiting to hear what their insurance will or will not allow, while the fans were running at full speed to dry everything out. Take a minute to check with your insurance agent to see what your coverage allows for in a repair situation.