Carrier interrogating clients over claim

Heather

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NY
Claims adjuster writes check for water damage no problem, check is maybe half of what all the contractors quoted them. They end up going with a unlicensed guy.

He screws up the plumbing and they have to bust out a wall and part of the downstairs ceiling to get to all the plumbing. Adjuster makes a surprise visit wants to know what is going on, they make it clear they are not opening up another claim but the adjuster opens one up.

Now they have received piles of paperwork that must be notarized asking for things like"what is the value of your bathroom before damages" Can the average homeowner look at a bathroom and know its value? They are afraid to put it to low or then put it to high and be accused of fraud.

Then they sent the adjuster back with a tape player to take recorded statements from the homeowner, then sending a transcript of the interrogation to be notarized. They also demanded that the contractor give them receipts for materials, even though he is unlicensed he buys wholesale in bulk and had most of the materials already. He stated that his cost is not the cost he charges the homeowner. Now the carrier is calling the homeowner because they unlicensed contractor has a disconnected phone and moved.

First claim was $4,500 the second 1,100. I have never heard of this and my client is getting afraid of being accused of something, I tried asking and was told its standard procedure to take some one through all this over a small claim? Is this standard procudure.....
 
"Claims adjuster writes check for water damage no problem, check is maybe half of what all the contractors quoted them. They end up going with a unlicensed guy."

Let's examine this opening statement/sentence, I couldn't read the rest of it as this makes little to no sense.

1. "Writes check, no problem"...that's a lie. If there weren't problems you wouldn't be posting this here.

-Part of me thinks you were being funny. I'll happily assume so and just move forward.

2. "Unlicensed"...what reputable Insurance Carrier is using unlicensed folks in an industry where licenses are all but a necessity in the P&C World. We operate in a community of licensed professionals but then we are going to have shoddy work done by unlicensed contractors? Doesn't make much sense. The Red Flags were there early is what I'm saying...
 
Once they hired an unlicensed contractor it all went south from there.

Did they tell you they were being offered half of what licensed and insured contractors were charging? What was your response?

This is all on them and I bet they get non-renewed. This won't be pretty.
 
Rick, the adjuster pulled out a check book on the first visit, no problem wrote them a check on the spot. My client took the check then started getting estimates after the fact.

I asked them the same thing why did you hire this guy? He had great references they said and worked on a friends home.

VolAgent - I checked into what the adjuster was offering, first they had a 1,000 deductible. He also cited wear and tear and that the contractors had inflated estimates.

So now they are afraid that they carrier may want the money refunded. They are also afraid of the whole notarized stmt thing, because they had to place a dollar value on a used 10 year old bathroom. They felt and so do I that the company is implying some thing, stupidity(yes) fraud (I don't think so). I called and was told that this is standard, just not buying it.
 
Interrogation? The insurance company paid for the loss and is going through procedures to limit future losses. Call your adjuster.

Also, the home owner should have used a licensed contractor. You get what you pay for.
 
Rick, the adjuster pulled out a check book on the first visit, no problem wrote them a check on the spot. My client took the check then started getting estimates after the fact.

I asked them the same thing why did you hire this guy? He had great references they said and worked on a friends home.

VolAgent - I checked into what the adjuster was offering, first they had a 1,000 deductible. He also cited wear and tear and that the contractors had inflated estimates.

So now they are afraid that they carrier may want the money refunded. They are also afraid of the whole notarized stmt thing, because they had to place a dollar value on a used 10 year old bathroom. They felt and so do I that the company is implying some thing, stupidity(yes) fraud (I don't think so). I called and was told that this is standard, just not buying it.

I'm not exactly buying this. Was the house written RC or ACV? Also, did he tell you the estimates were inflated and if so, did he have a contractor provide an estimate or ask them to get another estimate?

I'm not surprised the carrier is looking into all this. They used an unlicensed contractor who has only made it worse. The carrier is probably trying to figure out if it was stupidity or fraud and want to make sure to limit its losses.

The insured tried to go cheap and now they are realizing cheap can be very expensive.
 
Have you talked to the adjuster to get their point of view? I am guessing you will hear a different story, as is usually the case.

he said off the record everything was standard procedure. But the bathroom had been high end but showed a lot off wear and tear. Lots of children in the house, kind of cluttered. But it does not explain being questioned(client said an hour) could be exaggerated but the whole thing sounds strange.

Around here it is very common for people to use unlic guys or do the repairs themselves.
 
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