Delay is one of the many tactics employed by insurance carriers when it comes to the adjustment or litigation of an insurance claim. Delaying the payment of insurance benefits owed to a homeowner can go beyond simple annoyance but it can cause great financial harm as well. Countless homeowners are put in the tricky situation of having a pending claim, being denied their insurance benefits owed to them, and needing new coverage for their home. Carriers put their insureds between the proverbial rock and a hard place leaving their customers with very little options to proceed forward with their claim.
That is where a Pre-Settlement Build comes into play. When stuck in this predicament, homeowners have the ability to fix their damaged property in order to obtain new insurance while also proceeding forward with their pending claim(s). However, communication is key and you must make sure that your counsel and contractor are on the same page as you.
Before making any permanent changes to your property, be sure to notify your attorney. Your attorney will need to ensure that all necessary duties have been complied with and there is no issue as it relates to the spoliation of evidence. This may require you to allow the carrier to reinspect the property or snap a few additional photos before the work is complete. Your attorney will also want to document all the evidence and allow any inspections needed to support your claim in the event you do have to litigate your claim. Failing to notify your attorney before making those permanent repairs can be very detrimental to your case and leave you in a situation where your carrier is off the hook.
It is also important to communicate with your contractor as well regarding a Pre-Settlement Build. Of course if your contractor is completing the actual build then this is likely a moot point as long as the contractor documents the scope and cost of repairs. However, if you seek services outside of a contractor you have already signed any agreements with, I would do the legwork ahead of time as it relates to the contractors expectations for payment. The worse thing that could happen is you complete the work, received insurance benefits, then a third party comes knocking to received payment under a contract your previously signed.
What it all boils down to is that communication is vital to ensure you are in the best position to obtain the benefits you are owed. So if you are stuck with having to go uninsured or relying on a forced place policy from your mortgage provider, just remember there is an option to fix the property now while you continue to seek your benefits. Give your attorney a call today if you are stuck between that rock and a hard place!
Jared McElwee, ESQ.
