Overcharged by water restoration company

[Neeraj Shrivastava]

Hi ,

Few months ago I bought a new house with finished basement. One day overnight due to wind storm and rain in the area electricity outage happened for 6hrs. I was going to sleep but then thought to check basement. When I went down till then there was no water and I just realized that sump pump in corner wouldn’t run without electricity and there was no battery but I assumed that electricity will be back and it will be fine but within half an hour before I left basement water started overflowing from sump pump. I was afraid and called local fire station and they didn’t do anything and then I called insurance they suggested to get help of any water restriction and insurance will take care. I asked preferred vendor but lady on phone said you can use anyone available. I had never been in situation because it is my 1st home. I called restoration company and they assured to reach within 2 hrs. By the time basement had 2-4 inch water and started flowing on carpets. My fear started about ruining off basement but thank God electricity resumed and water was pump offed by sump but carpet got completely wet. And then after an hour restoration guy appeared and helped removing water from carpet using a machine and said as soon as I start work it will avoid mound deposits so I thought it’s right to do immediately he left after 1.5 hrs And then next day again his colleague appeared and put fans and dehumidifier and said it will remove entire water from wet carpet. And then 2nd day another person visited for inspection and said they need to remove padding. Meanwhile I received call from insurance saying some adjuster will visit to check eligibility for coverage and I asked restoration guy about expenses he said you will get it after work but suggested not to worry as it wouldn’t cost more . I also thought it’s not much work so will be done in few hundred or thousands dollars. Then 3rd day adjuster visited and later provided estimates of $2.3k that was somewhat I was ok with and meanwhile one dehumidifiers and 4/5 fans were continuously running in basement so far 5 days passed . I realized that carpets were completely dried and called restoration guy to remove them if not required. He promised to visit but didn’t visit another 2 days and I called him couple of times asking to remove dehumidifier and fans thinking that might be increasing my electricity bills. But he didn’t showed up and then on 7th day morning I asked him if he is not getting time I can switch off dehumidifier and fans because it was completely dry and he agreed. Finally someone visited on 8th day and removed fans and dehumidifier and suggested me to sign a digital paper saying it just says you are satisfied with our work. I just signed because my basement was really dried. I asked him also about bills . He said don’t worry sir we don’t charge more and will directly deal with insurance you don’t need to worry for anything. Then after 3/4 months I heard from insurance that billing company have sent a bill for same claim for $15000 and I was covered only for $5000 with $1000 copay. Since then I am trying to understand why restoration company have charged me this much . I asked them they sent me multiple pages of detailed bill which is again having charges that I don’t even think in my dream. They are asking me to pay entire rest of 10k after insurance. I don’t have that much money and even if I have I don’t want to pay this much for small water removal. If I would have known the coat I could have done by myself or with this much money I could have renovated my entire basement . I completely feel that I have been cheated and restoration company is looting me. need suggestions and options I have . I am so upset that not able to sleep . Luckily by googling got this foram to ask question so posting my query. Please please suggest 

Thank you in advance 

[Nathan Gesner]

Quote from @Neeraj Shrivastava:

Stand firm and tell them you won't pay it. You told them the carpet was dry and they could remove their equipment. 

The bill is between the restoration company and your insurance. Let them handle it.

[Neeraj Shrivastava]

Thank you so much Nathan for your kind attention! I got a call yesterday from restoration company saying they will send it to collection if I fail to pay asap. I have never been in such situations ever so a little afraid about my credit scores etc. I requested them if they can lower down their bill to my budget which is amount that I am covered with insurance. Insurance send them directly a partial check and one to me . I  am ready to handover check that I received from insurance. So total they will get $5k that itself I think more than real work was done but I am not expert so I don’t bother until it doesn’t come to my pocket. I don’t have any written communication where I asked to remove instruments but I did it at phone to person who worked for rest of thing at my home. I read things on Google where it says can lead to me for court case that I don’t want for sure. Restoration company asking for another $10k and said they can do it in installments.If I say I will not pay this much what can be outcomes?

[Neeraj Shrivastava]

Also I spoke to insurance company and they said they can not do anything and they paid whatever my coverage was eligible for.

[JD Martin]

Well, it's hard to say you are overcharged one way or the other. You should have a detailed invoice showing what you are being charged for. I've been through a couple of these and I would guess the charges are:

1. Emergency mobilization, 2. Labor for water extraction, 3. Set up and use of fans & dehumidifiers, 4. Final cleanup and demobilization

4 inches of water in a finished basement is quite a bit of water. Are your walls drywall? That kind of water level should have been wicking up the walls. 

I don't know what kind of insurance you have but it must be pretty lousy if you only have $4k worth of water damage protection. I had a massive flood in my house from frozen and burst water lines and my insurance covered everything except for my deductible. When there was a question or discrepancy between the restoration company and insurer, they discussed and worked it out themselves. It wouldn't surprise me, though, since most people opt for the cheapest insurance they can possibly get and then are disappointed when the coverage sucks. 

As for your other comments they don't make any sense. If you were inclined to deal with water pouring into your basement when you had no electricity, you wouldn't have bothered calling a company who had someone out within an hour. That's pretty good service, really, since I doubt you're the only person who had a flooded basement. 

[Neeraj Shrivastava]

Thank you JD , as I mentioned I am 1st time home owner and the mistake I did read online about water in basement and I wanted to save my carpets… I think now all of these are wrong fear. Water was not everywhere 4, but In unfinished area corner and around 1-2 inch . As soon as electricity came back it was all pumped out of my home . Insurance is saying it can be only covered under sump pump failure which is $5k only. Restoration company guy don’t come in an hour but after an hour water was pumped out from basement by sump pump. Now I let them work because I wanted to get my carpets dry asap…. You might laugh but being a new person in very new situation creates these kind of issues. I am not saying I don’t want to pay but I am fell in situation where I never thought to be and restoration company people at work continuously used to say it will not be to much bill… I had told them multiple times about my insurance limit. 
coming on bill part they have billed on number of miles they drove to come to work, hours , machines, padding removal , garbage disposal, and so many other things . I can upload bill if it helps to suggest me in situation.