There has been a dramatic increase in service providers swooping in while policyholders are under duress. To an extent, we understand why property owners want to take them up on their offers – they want to stop the damages as soon as possible. But when a contract gets signed between a property owner and a contractor, without clarity on how much the insurance carrier will pay for damages, you could be in danger.

Here enters the problem – property owners want to be paid for the damages, but we do not recommend signing away your rights to the contractor – this hands over your policy benefits and insurance proceeds to the contractor. It could even wind up incurring expenses that were unnecessary. It’s your insurance policy and you should not entrust or rely upon unlicensed individuals to assist in the insurance claim process!

If you want to be in control of your insurance claim and receive payments for the damages, then be very careful about what you sign and know your obligations, when entering into contracts. Contractors are there to construct and rebuild, they are not licensed or in the business of insurance claims filing, negotiation, or settlements.