In the Chaos following a fire or
water damage, insurance policies may be misinterpreted.
Despite the turmoil and confusion, it is important to
make wise decisions, because you will be living with the
results long after the confusion has passed. Your
insurance policy is a contract between you and your
insurance company. It entitles you to certain rights and
imposes certain obligations. As a professional
restoration contractor, Abracadabra Restoration believes
that it is in your best interest to understand the
rights and options available to you when you most need
them.
Below are numerous
questions frequently asked by policy holders.
1.
In addition to notifying your
insurance carrier, most policies require that you take
reasonable action to protect your property from further
damage.
If you fail to do
so, your insurance may not cover any additional loss
caused by your failure to provide such protection
2.
Your insurance policy does not state
that you must retain a restoration company that is
referred or approved by your insurance company. You are
entitled to employ the services of a reputable, fully
licensed and insured repair firm.
If you do not employ such a firm, you may be
responsible for the consequences and liability for injury,
damage or other actions. This is true whether or not
your insurance company recommend the firm.
3.
Only the owner of the property can
authorize a company to perform work on that property.
The repair contract is between the owner and the
contractor. Your insurer does
not have the right to directly contract for your repairs
or insist that you employ a particular supplier or restoration
firm.
4.
Under current laws you may have to
disclose post damage to any future buyers, making it
essential that all evidence of damage be completely
eliminated. Damage that has been covered up may be
discovered later and raise serious problems for the
prior owner - (I.e. Mold)
5.
First, ask for references to three
jobs the contractor is currently working on or has
recently completed. Call them. Second, check with your
local Better Business Bureau for any unresolved
complaints. Third, ask the contractor for credentials
and association memberships that indicate professional
training and status in insurance repair and restoration,
since this differs from ordinary home improvement or
maintenance work. And finally,
ask the restoration company about any relationship with
the insurance company that may impede their ability
to provide an independent evaluation of your damages.
6.
You are entitled to receive payment
from the insurance company within the time specified by
the policy and your state insurance regulations. Usually
this is 30-60 days after submittal of the signed proof
of loss. However, the policy also has time requirements
for the policy holder. Check your policy or ask your
adjuster or agent about them so that you will know what
to expect.
Only you (the policyholder) can insist
that your insurance company comply with its obligations
under the policy. As professional restoration contractors,
Abracadabra Restoration recommends that you do out of
our strong conviction that good workmanship and ethical
business practices benefit the insurance industry just
as they benefit the public at large.
NOTE:
this information is distributed for educational purposes
only and is not intended to and should not be construed
as providing legal advice.
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