Insurance payment for roof work

Legal Q&ACategory: BusinessInsurance payment for roof work
Ejaz asked 10 months ago

We signed a contract with a local company to redo our roof. This guy took 20k from our insurance money and never showed up to do the work despite several reminders. How do we get the money back?

1 Answers
Dave Alden answered 9 months ago

“This guy took 20k from our insurance money …” What insurance money, and how did he get access to it?
It sounds like there was a loss covered by a homeowner’s policy. In that case, your insurance company would assign a claims adjuster to determine the amount of the loss and offer some guidance to you as you go about getting it fixed.
What happened then? How did you go from “Here’s 20k to fix the roof,” to the roof is still not fixed and the 20k is gone?
Couple pointers: 1 – Insurance companies have lists of contractors they know are licensed, insured and reliable. Many states don’t require that you pick one of these contractors, but why not? They are vetted and don’t want to do something to alienate a big company that is recommending and paying them. Did you get talked into using a contractor not on the list?
2 – Generally insurance payments occur as the work is being done. These are called ‘draws’ or progress payments. If nothing else, one would expect that a contract was signed before any payment was made. Trace the money. How did it get to “this guy”? Was $20k the total cost of the job, or a deposit to get started? What is “this guy’s” business name, address, state contractor’s license number? Is he bonded?
3 – If your insurance company paid him the 20k, call your claims adjuster to let him/her know what’s going on. If you paid the 20k directly, call your contractor’s bonding company. They will assist you. If you didn’t check to see if he’s bonded, contact your state’s contractor’s licensing board.