If your homeowner’s insurer paid out for a legitimate claim to your property, must you do the work?

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

If your homeowner’s insurer paid out for a legitimate claim to your property, must you do the work?

My mother had damage to her home from mold due to poor drainage. She contacted her insurance company and hired an estimator. She was awarded money based on the claim determined between the estimator and the insurance company. She is now in the process of short selling the house in “as is” condition. And the potential buyers plan on doing a complete rehab to the area of the house. This being the case my mother has decided not to proceed with the work. The estimator who was going to contract out the work is threatening her that she is committing insurance fraud. Is this the case?

Asked on May 14, 2012 under Insurance Law, New Jersey

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

Under the law of all states in this country, if one's insurance carrier (or a third party's insurance carrier) pays out on a damage claim, the person receiving the check is not obligated to make the repairs that the settlement check is predicated upon. In your mother's situation, she can do whatever she wants with the check she received from her insurance carrier and that would be within the law.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption