Homeowners Insurance Refused to Pay Cost of Your Repairs. What Now?

Insurance pays too little to repair. We are in late 2021, with inflation and supply shortages continuing with no end in sight! Yet, California insurance carriers fail to pay property owners enough to perform repairs. Insurance companies write detailed estimates but a real world contractor cannot perform repairs at that cost. 

In fact, many insurance adjusters are still handling claims like it is 2019 or prior when they would spend months negotiating cost of repairs with contractors who had a large supply of materials and labor. Today, it is all different! Contractors do not have enough qualified labor and materials are in short supply. This situation, coupled with ongoing inflation, results in weekly increase in repair costs and if property owner needs repairs performed quickly, as is often the case in a sudden water, fire, vandalism or any time of damages, then general contractors need to charge a high premium above current higher pricing to attract limited qualified labor/subcontractors and purchase materials away from other jobs that can wait. This comes at a cost that is even higher than today’s already increasing prices.

This environment creates an even larger discrepancy between insurance carriers who want to minimize cost and homeowners who need repairs done quickly. Most insurers today do not understand that it would be in their best interests to settle the claim repair costs even at higher amounts but quickly, because they could minimize other claims costs. Moreover, if insurance carrier wastes two or three months negotiating a cost of the repairs with homeowner’s contractor, then those costs will likely be significantly higher in 2-3 months. 

For above reasons, a homeowner needs an attorney who regularly handles property damage claims to assist in an effort to bridge the gap in cost of the repairs, not only to minimize delays but also to negotiate the necessary repair costs sooner before the cost of repairs increases further. Please contact Gankin Law Corporation for an initial free consultation, sooner rather than later!

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