Insurance Claims and Owners Rights

[Crystal Jackson]

I recently had to file a claim on my house because it flooded due to My warranty company installing the wrong size compressor in my A.C. unit.  When they did this, I've been told it caused it to Completely freeze up and leak. This unit is brand new on the inside also installed by my Warranty Company on my house.  When the first check came it didn't cover  Hardly anything outside the Mitigation Invoice of $4230.00. The check was only $9,284.  When I told my insurance adjuster he told me to submit my Contractors estimate but I didn't have one.  

It took me 3 weeks to find someone that would itemize an estimate detailed to submit to Insurance.  He talked like he knew what he was talking about.  So I choose him.  He drew up a contract,  we settled on Overhead and Profit 20% of what he got me.  (Contract Details below)

                                "General Contractor Claims Management Agreement

The Undersigned/ Insured ( or insured representative ) hereby retains the services of a General Contractor from Best Home Solutions General Contractors. to Manage the re-mediate, repair, or replacement of the said damaged property 108 Marvin Gdns,  The adjuster of said loss is hereby authorized and instructed to attach a copy of this completed form to “ Proof of Loss “ Insurance company ( or companies ) liable for the coverage under said loss is hereby authorized and instructed to pay Best Home Solutions GC 10% Profit & 10% overhead total of RCV for said Management of the remediation, repairs, and replacement of damages at 108 Marvin Gdns, Waxahachie Tx 75165  

Please make checks payable to: Tim Alexander

Deductible (if applicable) is said to be paid by the property owner/ policyholder.

Conditions of Proposal and Contract

                                                          OVERHEAD AND PROFIT

Please add Contractors Overhead & Profit to current estimate as it is intended to cover costs the General Contract will incur while Managing the claim process. Overhead charged represents indirect costs incurred to operate a general contractor’s business. Examples could include office rent, insurance, staff, licenses, and marketing and advertising costs. Profit is “the excess of revenue over expenditures in a business transaction” and is used to pay the general contractor. Overhead And Profit should be paid unless there is a finding that the services of a general contractor would never be necessary given the scope of the work to be completed.

In determining what constitutes the “actual cash value” of the damage, Texas law equates the undefined policy term with the “fair market value,” Costs from which any depreciation would be deducted, should include any cost that an insured is “reasonably likely to incur” in repairing or replacing a covered loss. Overhead and profit and sales tax. clearly fit into this definition and should be included in both the replacement cost and actual cash value amounts.

After I approved the estimate to be sent to my insurance person, a week and half later he sends another VERY FALSE LIES ALL THE WAY Invoice to my insurance company claiming a leak under my cement slab and it was going to cost close to $8000.   This was not discussed nor was it approved by me.  This invoice was 100% a lie.  Because of that, my insurance company sent out more people to estimate repairs.  and to verify this particular Invoice that.  When I read the email that he ccd me on finally I lost my cool with him.  Because of that my entire claim after the initial one was denied.  This man is pissed.  Is saying I still owe him the O/P even though I didn't get a dime on his  estimate.  If fact they denied him all together.  This man sent in two invoices and whats $5000 in O/P

He says he is going to file a lien on my house.  What are my right?   NO REPAIRS HAVE YET TO BE MADE, in fact im most likely taking this to court.   How can they give him a lien on my house without PROOF of doing ANY WORK???  What are my right???   I'm freaking out and a very new home owner.  Please help me!!!!!