Hiring contractors to repair your home

The following article was published in the South Florida Sun Sentinel on August 15, 2011:

Hiring contractors to repair your home

By Pasquale “Pat” Cuccaro

Julie Patel’s Aug. 5 article, “Need repairs? How to decide whether to go with your insurer’s preferred contractor,” brought up several important issues for policyholders to consider when hiring contractors to repair their homes.

As president of the Florida Association of Public Insurance Adjusters, I would like to provide additional thoughts for consideration.

Public adjusters are the only insurance professionals licensed by the state to represent and protect insured consumers, and as such, we have a great deal of experience with repair issues.

When you have an insurance claim, most insurance companies will suggest that you work with one of their preferred contractors, which they have pre-screened. Those contractors often can be the best choice, but many policyholders mistakenly believe that it is their only choice and that in working with a preferred vendor, they are hiring an extension of the insurance company.

Even though a contractor may be recommended by the insurer, any contract you sign is between you and the contractor. If you dispute the quality of the repair, it is still your responsibility, and not that of the insurance company, to resolve that dispute.

We encourage policyholders to explore their options and hire the contractors whom they believe will provide the highest quality work at the best price.

Regardless of whom you hire, agree to the scope of repair and cost up front, and compare the loss amount to your policy limits prior to commencing with repairs. Many policyholders report that the preferred vendor provides a low estimate, only to later submit supplemental expenses that drive up the cost. If such repairs surpass your policy limit, you are responsible for the costs. Hiring a preferred vendor affords you no additional protection.

Also, agree up front that if the contractor is unsuccessful in repairing your property, they will not be paid for the work. This is very important, because if the property cannot be repaired to a pre-loss condition, it must be replaced, and it all comes from the same limit of liability. Never accept a shoddy repair regardless of the vendor.

Finally, never sign a “direct authorization” for payment, in which the insurer pays your contractor directly. This is your policy and your home. You should have direct knowledge of what work is being performed at what price.

Find this article here:  http://www.sun-sentinel.com/news/opinion/fl-insurance-adjuster-forum-20110815,0,854442.story