Paul Sanchez
When property damage occurs, homeowners often wonder whether to call their insurance company or a contractor first. The relationship between the insurance company, the contractor, and the property owner can be confusing, especially for those unfamiliar with the repair process. While it is ultimately up to the homeowner to decide, there are advantages to calling a contractor first. A contractor can provide an accurate, objective assessment of the damage and give you leverage when filing a claim. However, if you know you will be filing a claim, it is best to do so promptly and obtain estimates from contractors.
| Characteristics | Values |
|---|---|
| When to call a contractor first | When unsure of the extent of damage and repair costs. To get an accurate, objective assessment and leverage when filing a claim. |
| When to call insurance first | When you know you will be filing a claim and getting estimates from contractors. |
| Contractor selection | The homeowner can select their own contractor, but the insurance company may recommend or bring in their own contractors. |
| Contractor and insurance company relationship | The insurance company is not responsible for the contractor's work, delays, or actions. The contractor is responsible for repairs, and the insurance company provides the funds. |
| Contractor insurance | Ask for a "Certificate of Insurance" to ensure the contractor has liability and workers' compensation insurance. |
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What You'll Learn
- It's recommended to call a contractor first to get an objective assessment and leverage when filing a claim
- Contractors can answer any questions about the damage and what's needed for repairs
- It's important to know the full extent of the damage to determine the scope of work and price
- Insurance companies may invoke their 'right to repair and bring in their own contractor
- Homeowners should be aware of the relationship between the insurance company, contractor, and themselves
It's recommended to call a contractor first to get an objective assessment and leverage when filing a claim
When property damage occurs, it is recommended to call a contractor first to get an objective assessment and leverage when filing a claim. This is because a contractor can provide an accurate and fair evaluation of the damage, giving you an idea of the costs of the damage before filing a claim. They can also answer any questions the insurance adjuster may have about the damage or repairs, eliminating potential problems during the adjuster's assessment. This can be particularly important when dealing with an insurance adjuster after a disaster, as they will be concerned with the age of the roof and whether the risk is too high to continue coverage.
Calling a contractor first can also help you determine whether the cost of repairs will exceed your deductible, which is important information when deciding whether to file a claim. If the repairs are less than your deductible, you may choose to pay out of pocket to avoid potential increases in your insurance premiums. A contractor can also advise on whether the damage was caused by a disaster or was pre-existing, which can impact whether your claim is denied or accepted.
Additionally, when you call a contractor first, you can schedule multiple quotes and have your chosen contractor meet the adjuster to look at the damage together. This can help ensure that the scope of work and price are accurately determined. The scope of work refers to the materials and labour needed to make the repairs, which is detailed in an itemized "scope of loss" prepared by the insurance adjuster. Having a contractor assess the damage first can help prevent disagreements on price, which often arise due to incorrect or incomplete communications regarding the scope of work.
While it is not common, insurance companies may invoke their "right to repair" and bring in their own restoration contractor to perform the repairs. This is something to be aware of when deciding whether to call a contractor or insurance company first. However, as a homeowner, you typically have the right to choose your restoration contractor and work with the insurance company to agree on a price for your claim.
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Contractors can answer any questions about the damage and what's needed for repairs
When property damage occurs, it is a good idea to call a contractor before your insurance company. A contractor can give you an accurate, objective assessment of the damage, complete with a full report before the insurance adjuster arrives on the scene. This can give you leverage when filing a claim.
Contractors are knowledgeable about the roofing system and can prepare you for the insurance adjuster's inspection. They can also answer any questions about the damage and what is needed for repairs. They can speak directly with the adjuster and confirm that the damage was caused by a disaster and was not pre-existing. This can eliminate any possible problems that may arise during the adjuster's assessment.
The insurance company will send an adjuster to evaluate the damage and prepare an itemized "scope of loss" that details the materials and labour needed for repairs. However, an adjuster is rarely qualified to decide on the full scope of work and price for repairs. They can provide an initial estimate, but a contractor is needed to determine the full scope of work and price.
It is important to note that the insurance company may recommend contractors to fix the damage, but these contractors are employed by the insurance company and may not have your best interests in mind. As a homeowner, you have the right to choose your contractor, and it is recommended to select one with experience dealing with insurance companies.
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It's important to know the full extent of the damage to determine the scope of work and price
When your home has been damaged, it is important to know the full extent of the damage to determine the scope of work and price. This is where a contractor comes in. A contractor can give you an accurate, objective assessment, complete with a full report before the insurance adjuster arrives on the scene. This can give you leverage when filing a claim.
An insurance adjuster will perform an in-depth inspection to identify problems that you or a roofer may have missed. They will prepare an itemized "scope of loss" that describes in detail an estimate of the materials and labour needed to make the repairs. However, an adjuster is rarely qualified to decide what the full scope of work should be for repairs. They can provide an estimate, but a contractor must be involved to determine the full scope of work and price.
If you are unsure how much damage has been done or the costs of the damage, it is advisable to call a contractor first. Many people obtain estimates before filing a claim because they are unsure if the total cost of repairs will exceed their deductible. A roofing contractor, for example, can assess the damage and confirm that it was caused by a disaster and was not pre-existing. They can also be present when you meet with the adjuster, answering any questions about the damage intelligently and eliminating any potential problems that may arise during the adjuster's assessment.
However, it is important to note that the contractor you choose may impact the dynamics with your insurance company. While you can choose your own contractor, insurance companies can invoke their "right to repair" and require you to use their preferred contractor. This is because construction costs are driven by the scope of work and complexity of a job, and insurance companies aim to minimise costs. Therefore, it is beneficial to know the full extent of the damage and the scope of work required to make an informed decision about your contractor.
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Insurance companies may invoke their 'right to repair and bring in their own contractor
When property damage occurs, it is advisable to first call a contractor to assess the damage and provide an estimate of the repair costs. This is because insurance companies are only responsible for providing the funds needed to make the repairs, not for carrying out the repairs themselves. Obtaining an estimate before filing a claim is prudent, as it allows homeowners to determine whether the cost of repairs will exceed their deductible.
However, it is important to note that insurance companies may invoke their "right to repair" and bring in their own contractor. This means that insurance companies can require homeowners to use their preferred contractor to perform the repairs. While it is not common for insurance companies to exercise this right, it is essential for homeowners to be aware of this possibility.
In most cases, homeowners have the right to choose their restoration contractor. However, insurance companies can make it financially challenging to use a contractor outside of their network. For example, if a homeowner chooses a contractor who is not on the insurance company's list, they may be responsible for paying the difference if that contractor's price is higher than the insurance company's preferred contractor.
To avoid potential challenges, homeowners should ensure they have an accurate scope of work when obtaining bids and negotiating insurance claims. This includes understanding the full extent of the damage, the materials and labour required, and the complexity of the job. A qualified contractor can help determine the full scope of work and price, while an insurance adjuster can provide an initial estimate.
In summary, while homeowners have the right to choose their contractor, insurance companies may invoke their right to repair and bring in their own preferred contractor. To make an informed decision, homeowners should obtain estimates from contractors and understand the scope of work required before filing an insurance claim.
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Homeowners should be aware of the relationship between the insurance company, contractor, and themselves
When it comes to assessing damage and estimating repair costs, homeowners can benefit from hiring a contractor before contacting their insurance company. Contractors can provide an objective assessment and report on the extent of the damage, helping the homeowner understand whether it is necessary to file a claim. Additionally, contractors can answer any questions the insurance adjuster may have and ensure that the damage is accurately attributed to the covered incident rather than pre-existing issues. This can be particularly advantageous for the homeowner when dealing with complex roofing systems or severe weather damage.
After filing a claim, the insurance company will send an adjuster to evaluate the damage and prepare a detailed "scope of loss" document outlining the materials and labor required for repairs. Homeowners should ensure that their chosen contractor uses this scope of loss as the basis for their repair work. It is essential to clarify the scope of work to avoid misunderstandings and disputes over pricing. Public adjusters can also assist in navigating these issues and ensuring fair compensation from the insurance company.
Ultimately, homeowners must understand that the contract between themselves and the contractor is separate. The insurance company is not responsible for the contractor's work or any delays caused by the contractor. Homeowners should carefully review the contractor's qualifications, insurance, and references before signing a contract. Additionally, it is crucial to maintain open communication between all parties involved to ensure a smooth repair process.
Understanding the dynamics between the insurance company, contractor, and homeowner can help set clear expectations and facilitate a more positive experience when dealing with property damage and repairs.
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Frequently asked questions
Yes, it is recommended to call a contractor first before calling your insurance company. A contractor can give you an accurate, objective assessment of the damage, complete with a full report before the insurance adjuster arrives. This can help you prevent possible problems that may arise during the adjuster’s assessment and give you leverage when filing a claim.
A contractor can give you an estimate of the damage and repair costs before you file a claim. This is useful if you are unsure if the total cost of repairs will exceed your deductible. The contractor can also answer any questions the adjuster may have about the damage or what is needed for repairs, and confirm that the damage was caused by a disaster and was not pre-existing.
Your insurance company will send an adjuster to evaluate the damage and prepare an itemized “scope of loss” that describes the materials and labour needed for repairs. The adjuster has the experience and training to identify problems that you or a contractor may have missed. The insurance company can also recommend contractors to fix the damage.
You can use your insurance company’s recommended contractor, but they are employed by the insurance company and may not have your best interests in mind. It may be better to find a contractor that deals with insurance claims and has them assess the damage first.
