Contract with water damage co still valid after denied coverage?

[Zoe Lee]

We had sewer water backed up into a multiplex a couple of weeks ago. Our PM sent a water damage company onsite to extract the standing water on emergency.

Later the company called and asked me to sign a contract so they could proceed with some testings, and negotiate with my insurance company. They were confident that it should be covered. They said they could even help with my deductible.

My insurance company denied the claim later.

But their quote is extremely high. Without insurance coverage, we have to find another contractor to do the work.

My question is, is the contract I signed still valid? The contract reads:

Contractor will furnish all materials, equipment, subcontractors and perform all labor necessary to complete the following work (the“Work”): Restore property to Pre-Loss condition.

Contractor shall carry adequate commercial liability insurance and workers’ compensation insurance in the amount legally required and will pay all federal and state taxes on the materials and labor included in the Work. Contractor shall be acting solely for Client and not for Client’s insurer/adjuster.

After I told the guy from the water damage company that my insurance denied, he kind of stopped replying to my text.

I did find another company who can do the job for a fraction of the price. But am I still legally bound with the first company?

This is our first time dealing a water damage company. Subsequently very unfamiliar with their process when insurance is involved.

Could someone share your thoughts if you have dealt with this before?

Thanks very much!

Zoe