When you file a homeowners insurance claim, don't trust your home to just any home improvement contractor
If a catastrophe were to strike your home, do you know who you would choose to repair it?
We’ve all heard nightmare stories about pulling out the home insurance policy and ending up finding contractors who do sloppy work, overcharge, or leave a job unfinished.
If you have never worked with a contractor before–or if you have and it was a bad experience–you may find yourself in a quandary. How can you avoid being taken advantage of by an unscrupulous contractor?
Even though a few dishonest contractors have sometimes tarnished the image of the industry, there are still excellent contractors out there who offer experience, ethics, and superior skills. We asked Ken Loomis of Ken Loomis Construction in Sevierville, TN, for tips on how to find one when it’s time to file a homeowners insurance claim.
Pull out Your Home Owners Policy and Then…
- Call your insurance company and talk to the insurance adjustor who is working your claim. You want the insurance adjustor to assess the damage and make an estimate of the cost to repair your property. Armed with this estimate, you know how much the repairs should cost and are better prepared to negotiate with your potential contractors. Unless you are willing to pay the difference out of your own pocket, you need to find a qualified contractor who will be able to stay within your budget.
- Check references thoroughly. The best place to get references is from friends and neighbors. Ask them first who they would recommend. Find out if the contractor belongs to the Better Business Bureau and the local Homebuilder’s Association. Be sure to ask to see proof of the contractor’s liability and workman’s compensation insurance. If he doesn’t have it, move on to the next candidate. If the contractor doesn’t have proper insurance, you could be held liable for any accidents that might happen on your property.
- Read and understand the contract. Don’t sign a contract without reading it completely. Look for information stating what guarantees are offered, completion dates, and of course, costs. Ask for a copy of the contract and 24 hours to look it over before you sign. If you don’t understand it, have a lawyer review it for you. If the contractor is reluctant to let you have the time requested, you will not want to choose him/her for your project.
- Do not pay the entire cost up front. Although you may need to pay a reasonable down payment, don’t pay the contractor entirely until the job is finished to your satisfaction. Always use a personal check to make your payments so you have it as a receipt. Paying in cash is not recommended.
- Keep careful records. Start a file to hold all the paperwork retaining to the project. Keep the contract, receipts, bills and invoices, plans and specifications, copies of the contractor’s proof of insurance, and any other pertinent papers in the file.
Dealing with a homeowner’s insurance claim can be stressful business. Make it easier on yourself by following these guidelines so you do not get taken advantage of by an corrupt contractor.
