HELP! Insurance is threatening total loss in the middle of project!


We began work in a mobile home and shed (Texas). Insurance summary was missing many things as this home and shed had been damaged from Hurricane Harvey and needed a full restoration, roof, inside, and out. Insurance sent second adjuster and agreed on the things that were missing. Insurance adjuster gave us approval to begin work while second summary was being created as the home was being further deteriorated from rain. We began work and when the second summary was sent, more items were included but still had several major items missing and their prices were severely under priced since work and material costs are higher in this area after Harvey. I submitted a supplement for the remaining items and the for the price differences (to match as close to Xactimate prices) but now the adjuster is saying that in this case the home would be a total loss and they would take ownership. They approved storage for the entire double wide mobile home along with other things when the second adjuster came so company resources covered those while supplement check came in but now they’re saying this.

Can they do that??? Or is it a scare tactic? Can they claim total loss after both roofs (home & shed) have been replaced, entire ceiling has been replaced and painted, exterior walls have been replaced and painted, carpet for the entire mobile home is on its way?



Have they met the policy limits with the supplement?



They approved 17,000 initially. Called in a second inspection and it got raised to 37,000 and the limit is 50,000. Only 30,000 have been released and the other 7,000 are the recoverable depreciation that they still have. Over 30,000 of work and labor have been invested plus about 2,000 - 3,000 out of company resources for items they approved over the phone but now are trying to deny. I know I should’ve known better than to use my resources before having it in writing but my client’s home was further deteriorating with mold and continuous rain so the insurance asked me to begin and I’d get the supplement shortly except I got a supplement (the one where it was raised to 37,000) with missing items. To make the full repairs, it will go over 50,000 but I guess some items will have to be left as is.



I would put a lien on the property asap…the insurance company cannot do anything with it without paying the lien.



Thanks! I appreciate the help! Maybe they were just saying that to try and scare us off. The adjuster called me to set up a conference and go over the supplement. If this doesn’t work out, I’ll have to put a lien on the property asap like you mentioned. Thanks!



Get a copy of the policy and determine what the limits are yourself.

Placing a lien is useless and likely not appropriate.