Major Tree Storm Damage & Insurance Claim

[galaxy]

So I had some pretty extensive tree damage from all these storms that just hit the midwest last Friday. Several trees snapped and down in the yard. None hit the house, but several laying on the fence in several sections. HUGE cleanup job. Question is this...

Had a few companies come do an estimate. But one in particular I need to ask about. A legit, popular, local company came out and did an estimate. He did a half ass job of looking around at the damage and flat out refused to give me a quote. Would not give me a dollar amount. He even said that he'd take down two other undamaged trees that need to come down anyways. That alone probably a $3K+ job if out of pocket. So, said he'll take the job, do the 100% full storm/damage clean up - literally everything - PLUS take down the two big trees I need gone, and he'll just fight it out with the insurance company. Want's me to sign a blank value contract (yes, I need to and will read it), he'll get the whole job done, and then we're done. He'll deal with insurance company 100% over the value. If he takes a loss, he'll eat it and 100% guaranteed me he would not come after me for any loss or difference in payout.

Thoughts?? Is this an industry standard? Happens all the time and probably legit??

My first ever home claim, so, trying to learn my way through this.

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[wingnutt]

Go buy a chainsaw, take your time and stack them cords!

wait a couple weeks to dry them out and sell to recoup the chainsaw plus beer money

 

[galaxy]

Sooooooo, trust me. Thought of that. Even had a plan set up for today to do just that very thing. I had three chainsaw drivers and five child labor victims. It's a big job, but we coulda blown through it. But...BUT...I'm filing a claim for the house anyways. Major damage to the house. Since there's going to be a big claim anyways, might as well let someone else do it. Right?? No??

And doing it myself doesn't get down the two other trees that need to come down. I'm not dropping those; too close to the house.

@wingnutt Does that info change your opinion?

 

[Balr14]

Do not sign a blank contract! You want a contract that spells out, in detail, exactly what work will be performed and how much it will cost. If there are additional charges or changes needed, they must be itemized, agreed to and added to a contract rider. This is the only way to protect yourself. Any other arrangements opens you to having a lien put on your house which is extremely messy and expensive and altogether too common.

 

[wingnutt]

Sooooooo, trust me. Thought of that. Even had a plan set up for today to do just that very thing. I had three chainsaw drivers and five child labor victims. It's a big job, but we coulda blown through it. But...BUT...I'm filing a claim for the house anyways. Major damage to the house. Since there's going to be a big claim anyways, might as well let someone else do it. Right?? No??

And doing it myself doesn't get down the two other trees that need to come down. I'm not dropping those; too close to the house.

@wingnutt Does that info change your opinion?

yea, it does…you didn’t mention the major house damage upfront

 

[Skye]

Sorry for what happened, the damage, getting estimates, repairs and the downtime.

To anyone, insurance companies are using Google Maps and other sources to review properties and adjust rates accordingly. If you live on a lot with trees and other potential liabilities, in the long-term, it might be worth pairing those back or removing them entirely. Anything that could add risk of wind, fire and other types of damage. Some insurers are starting to discuss discounts with their policy holders for reducing or removing these risks and improving survivability (landscaping changes, metal or tile roofs, vs. traditional asphalt or other, etc.).

Below are some descriptions to a concept that I think is involved with the one contractor: Direction To Pay; this is where you release your rights to file a claim to another party, in this case, the contractor doing the work. DTP contracts are something of a trend I've been reading of the last few years.

I'm over-generalizing because laws can vary from state-to-state, but...you sign the contract. Contractor comes in, does the work, you pay nothing, you receive nothing. The contractor turns around and files a claim with your insurance company. Maybe they'll ask for a respectful sum. Maybe they'll ask for a gazillion dollars. In the end, they receive something, however much that is. But your policy, your assets are linked to that claim. It now becomes part of your insurance history (see CLUE score). In some states (see further below), the homeowner is liable to pay anything the insurance company doesn't.

https://www.bankrate.com/insurance/homeowners-insurance/clue-report/

I wouldn't allow any other entity, in this case a contractor, to act on my behalf when dealing with insurance or a claim. You want your home repaired in a manner that meets your standards. If a contractor is floating a DTP contract, they're looking to maximize their profits, potentially at your expense.

"Some construction firms require you to sign a form that allows your insurance company to pay the firm directly. Make certain that you're completely satisfied with the repair work and that the job has been completed before you let the insurance company make the final payment. Remember, you won't receive a check for the repair job. The construction firm will bill your insurance company directly and attach the "direction to pay" form you signed."

"Direction to pay (DTP) is a financial arrangement where the policyholder, who is entitled to receive an insurance claim payment, instructs the insurance company to pay the claim proceeds directly to a third party. This third party could be a vendor, contractor, service provider, or any other entity to whom the policyholder owes a debt or has entered into an agreement."

https://insurancenewsnet.com/oartic...nsurers-dont-pay-south-florida-sun-sentinel-2

Laws vary by state. ^ This is one example how things went with a homeowner in the state of Florida.

Specific to your damage, it could involve several companies and contractors. It's a PITA. Maybe focus on one topic (roof, landscaping, interior, etc.) at a time. Getting a notebook, something you can write into, tape business cards into, that has tabs, could help keep things organized while maintaining a history for go-backs and reminders later.

It won't be a straight line, but I hope things go as smoothly as possible for you. Good Luck.

 

[wingnutt]

Good info ^^^ thank you for that!

 

[Inthehighdesert]

I’m a GC, deal with this pretty regularly. Do not sign anything with anybody. Let your insurance provider come out and do their estimate. It should be pretty detailed, usually is. The contractors that chase this type of work will do everything in their power to blow the adjusters bid threw the roof(no pun intended). I would not use anybody that will not provide a bid or work from the adjusters bid. The tree removal shouldn’t be an issue to find someone to do it, just make sure they’re insured. Can you define major damage to the house? That can be a fairly large scale depending on perspective. No insurance company I’ve dealt with will make a direct payment(this can vary by state), even if the work is completed. Here the mortgage company’s are required to be notified and they send out an inspector to certify the repairs are done and completed to the previous level. They will in some cases if the mortgage provider is out of state issue payment to the homeowner and the mortgage company. Here claims are actually tagged to the property, not the actual person on the deed. Referring to property claims, not liability. Obviously the claim amount is less the deductible.

 

[S550HPP]

Need to hire own architect who will hire sub designers who will scope and spec the work and tender it this is the only qualified cost estimate you will ever get. You can then use them to supervise and sign off.

Very important architect does house inspection at the least if rest is just yard then a landscape tech or designer can I spec scope and tender it.


Everything else is a go show and aggravating plus you'll have everything I hand if need to litigate of pansies trying to rip you off

 

[Snakebyte]

Sorry for the later response, and for your dilemma.

Personally, I would run away from that contractor. Obviously, you hesitated because the deal smelled rotten.

In FL, we had AOB (assignment of benefits) that lawyers and contractors nearly broke the insurance market using that previously permissible route. In fact, we had lawyers and roofing contractors in cahoots. That worked simply...when you signed a contract on the iPad they roofer provided, you were not signing a contract with him/her, but rather if you took time to scroll through the contract, it was with a lawyer, not the roofer.

All that said, I'm not sure what your state's statutes are specifically related to AOB's, but I'd look for someone else, regardless. I'd contact my agent....NOT the insurance company to get their thoughts. The reason I say NOT the insurance company is, many companies will dock you a claim against your policy, even if you ultimately choose to go the out of pocket route.

 

[Brokestang]

Does your insurance policy pay for the removal of trees? I was hit by a Tornado several years ago & my insurance only removed trees from buildings on the property. Trees on fences & on the ground were my responsibility & out of my pocket to pay for cleanup.

 

[galaxy]

@Inthehighdesert Hey Charlie, the major damage remark was to the tree damage. House was bad, but nothing reqiring tarps or immediate actions. Total roof replacement, holes punched in siding on the west side of the house, lots of other ancillary damage (finish on the deck, garage door trim, screen windows beat out, etc). Yes, insurance co had already had the adjustor out (finished that up Wed night), and yes, I have a very detailed, very broken out claim report.

@Brokestang It does. Up to $1,000 for yard clean up only. Anything laying on the fence is a separate pot of money. So now that I'm done with the insurance adjustor/company, I need to circle back to get some of these guys started, I guess.

My insurance appraised the damage (for everything) at $34K and change. They sent me a check (that was coordinated with the mortgage co) for $24K. I guess the difference in there is worked between the roof company and the insurance co?!?!

@Snakebyte I don't have an agent vs insurance co, per se. To me, they're one and the same. I don't have a brick & morter company I can walk into and talk to my agent or adjustor.

 

[Inthehighdesert]

34k isn’t to bad really. That amount tells me the damage isn’t really bad, more spread out. That’s a good thing. Sounds like it’ll be a little more tedious desling with the areas that need work. Here 30k plus for damage on a flat roof from hail is the norm. Hopefully where you are it’s not difficult to find tradesman to do what you need. Here it’s a pain. Not being political, we have tons of unlicensed illegals running around trying to bid and do work. To say the work is subpar is an understatement. Luckily a have a pretty decent size crew so don’t deal with that. Hope it all goes off without any more stress.

@Inthehighdesert Hey Charlie, the major damage remark was to the tree damage. House was bad, but nothing reqiring tarps or immediate actions. Total roof replacement, holes punched in siding on the west side of the house, lots of other ancillary damage (finish on the deck, garage door trim, screen windows beat out, etc). Yes, insurance co had already had the adjustor out (finished that up Wed night), and yes, I have a very detailed, very broken out claim report.

@Brokestang It does. Up to $1,000 for yard clean up only. Anything laying on the fence is a separate pot of money. So now that I'm done with the insurance adjustor/company, I need to circle back to get some of these guys started, I guess.

My insurance appraised the damage (for everything) at $34K and change. They sent me a check (that was coordinated with the mortgage co) for $24K. I guess the difference in there is worked between the roof company and the insurance co?!?!

@Snakebyte I don't have an agent vs insurance co, per se. To me, they're one and the same. I don't have a brick & morter company I can walk into and talk to my agent or adjustor.

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