If you have a property damage claim and you want to do the work yourself, how do you receive payments?

Question

I have filed a property damage claim. I will receive a check up front and a check when the repairs are completed. If I do the repairs myself, how do I get my last payment?

Answer 1

You have the right to do the repairs yourself. (However, I would plan on having electricians and plumbers take care of their respective jobs.) All you have to do is show them the receipts for the materials and supplies, plus log the amount of hours it took to do the work. You can show that you took the time to repair it yourself and charge a per hour rate. Something reasonable, even the amount of money you make per hour at your regular job.

Usually the insurance company will not pay for your time (but it can happen), but they will pay for the balance of the first check and the amount of materials and supplies you used.

If your policy was written on a replacement cost basis, you should just pay to have someone else do the job. In the long run it will be much easier for you.

Answer 2

first, are you qualified to repair the damage? talk to your agent and let him tell you how his company will handle it, they might require someone to inspect your work. the insurance company has a duty to your mortgage company to make sure that repairs are done properly, so if it was a repair that required a license, etc
then they would have to insist that the work be done by a licensed contractor