What are the rule regarding this. If I can not keep the money, how soon do I have to have the work done. I need to give myself a short term loan and the contactor that I gave the money too claims that if he gives me the money back it's insuance fraud. I will eventually do the work but need they money now. The contractor has also been sitting on the money for over a year and I had not heard from him in that time. I am also thinking of doing the repair myself. What are the implications to this?
2007-05-31 08:08:59 · 6 answers · asked by Jim S 1 in Business & Finance ➔ Insurance
Well, if you take the money and do not use it for repairs then it would be insurance fraud. Your argument that you will eventually get the repairs done is like someone caught stealing saying they were only borrowing the money.
Also, if the work is not getting done then the contractor might be committing insurance fraud. Talk to the insurance company and tell them that the contractor took the money but is not doing the repairs. They might be able to help. In any case that is a good idea so that the insurance company does not find out that the repairs have not been done and then blame you for fraud.
2007-05-31 08:13:50 · answer #1 · answered by A.Mercer 7 · 0⤊ 1⤋
You could keep the money and do it yourself since the check must have been made out to you, not a mortgage company. My question is why didn't you track down that contractor and get your money back? Please be more aggressive in getting in touch with him.
I would have paid on at least three intervals with a firm contract. He could be out of business by now! Hopefully you kept a copy and receipt of the payment to file in small claims court if necessary.
You have two separate issues between yourself and the insurance company and the contractor. The insurance company paid the claim as agreed, so focus on the contractor.
He didn't do the work, so you have every right to get someone else or yourself to finish it. He is totally out of bounds to try that excuse. A note from an attorney may free up the funds quicker, but don't hold your breath.
Try a bank for loan or zero APR credit card which takes 2-3 weeks in the interim.
2007-05-31 08:34:02 · answer #2 · answered by Ginger 6 · 0⤊ 0⤋
You can keep the money, if the check is paid out only to you. If it's paid to the mortgage company, they won't sign off on it until the work is under contract.
If you don't have the repairs done in a reasonable period of time (depends on the scope of the job, usually 3-6 months) the insurance company can cancel your policy. No one else will give you a policy, with unrepaired damage.
The contractor is wrong. His deal is between him and you. And SHAME ON YOU paying the contractor before the work is done. That's one of the oldest ripoffs in the book. You NEVER EVER pay a contractor until the job is done - or if it's a huge job, pay as the work gets completed. Any reputable contractor will allow you to pay AFTER or pay as you go. None of this "payment in advance" nonsense.
The insurance company is NOT going to pay twice, and if it's been a year, my guess is you're going to have to take this guy to court to either get the work done (although who would WANT him at this point?) or get your money back.
You have two transactions - one between you and the insurance company. One between you and the contractor. They are seperate.
2007-05-31 08:18:55 · answer #3 · answered by Anonymous 7 · 1⤊ 0⤋
I don't think you could get in trouble for this. The insurance money is to cover the damage and the cost of the repair but I don't know of any reason that you have to have a contractor do the work or do it in any time frame. We turned in water damage to our insurance company and my husband fixed the damage. I don't understand why the contractor has been sitting for a year without doing the work. You should be able to get a refund for that reason alone.
2007-05-31 08:14:36 · answer #4 · answered by angela 6 · 1⤊ 0⤋
i have the exact same circumstance myself.. thats strange.. im under the impression that as long as the ins and mortgage company is satisfied that it wont effect the value of your property you can do what you want with the money.. double check though.. i did it but im going to have the work done at a later date when my finances are better..
2007-05-31 08:20:01 · answer #5 · answered by Thomas B 2 · 0⤊ 1⤋
If you still have money after fixing your house, sure. It is your money--remember all of those premiums you paid?
2007-05-31 08:18:16 · answer #6 · answered by james h 2 · 0⤊ 0⤋