flooding damage. Insurancer's estimate more than Contractor's estimate (condo, house)

[Flying Tiger]

I have a flooding in my house. Adjuster/Insurance company came to inspect and give an estimate ($3000), my deductiable is $1000, so Insurance company sent me a check of $2000.

Later one contractor came to my house and estimate the cost is about $2000. They didn't know that my insurance company already sent me a check. After I told them this, they asked me to show them the adjuster's itemized estimate, and I did. Then they came back and told us the cost will be $3000 (which matches adjuster's estimate). When I asked if the scope of work and material are the same, they said yes.

So my question:

1 Can I shop around after the Insurance company sent me a check? Erie is the insurancer. If I can find a contractor who can cost less, then can I keep the "profit"?

2 Why the contractor increase the rate after they know my adjuster's estimate is higher?

[carcrazy67]

Just curious-why did you show your contractor the insurance breakdown? Personally I would not use a contractor that increased his price to match the insurance payout!

I would think that in most cases (unless you are contractually obligated to use a specific contractor) you should be able to shop around for another contractor and any savings are yours.

[twingles]

Originally Posted by carcrazy67

Just curious-why did you show your contractor the insurance breakdown? Personally I would not use a contractor that increased his price to match the insurance payout!

I would think that in most cases (unless you are contractually obligated to use a specific contractor) you should be able to shop around for another contractor and any savings are yours.

I agree with this. Shop around and don't show the contractor what you got.

You cannot be contractually obligated to use anyone by the insurance company, that's not allowed.

[glazersight]

Yeah, don't hire a contractor that asks to see your insurance estimate, that's between you and the insurance company.

Smells like a crook to me, did you find him on Angie's list? I'd have to write him up for that one.

[Sherifftruman]

If you want to ensure they have the scope right, make a copy and black out the actual costs, then copy again to make sure the numbers don't bleed through.

Then again, most of the contractors that specialize in insurance repairs know what costs they wil pay out anyway, so if it's a restoration company and not just a random contractor you might want to keep that to yourself also.

[Carlos_Danger]

I had a claim due to an upstairs neighbor (condo) water heater failure. The insurance money totaled $6500.

I did a lot of the clean up myself. Making sure it all dried out.

I had a drywall guy do the ceilings paint etc. $1500. A few weeks later I had a flooring guy re-tile the kitchen floor. $1200.

[NC gal (aka Oregon gal)]

I agree with all the above advice! If you have a choice who to hire, I wouldn't hire the contractor that raised his quote to match the adjusters estimate....that smells like trouble to me. Glazer is right...if that contractor is on Angie's List, I'd write him up for that!

There are so many honest contractors that would love your business and be fair and professional with you.....you deserve nothing less!

I'd get at least five estimates from referred contractors and compare scope of work, materials, labor. Also, do they warranty their workmanship for at least a year? Do they carry insurance? Have a legitimate website you can see past projects on? Do they have LOCAL referrals that they would be happy for you to call?
Contractors in this state don't have to be licensed for projects under 30k, so that isn't as much a concern as the insurance, IMHO.
Good luck!

[Sherifftruman]

Well, it is suspicious that he raised his price to $3,000, but that doesn't automatically mean he is shady or dishonest. It is possible that there is some scope item(s) that he left out and decided to include once he saw the insurance adjuster's write up. He may have made an honest mistake in leaving those items off and they are legitimately worth the extra $1,000. I would expect the contractor to point those items out and be very apologetic.

I also would probably not use the guy anyway, just on general principal as it sounds like best case is they left out something major by mistake.

[Sal_M]

I am in the process of having repairs completed for water damage. I had more then 5 estimates and there was wide variation in prices. I found one of the larger companies was the highest because they charge a minimum for different trades and we were a small project. If you are the least bit uncomfortable with the company, move on, there are plenty more out there.

[HP91]

Always get at least 3 quotes...and don't assume you are going to get a better job because you pay more.