Here is an insurance claim question that we recently answered as a contributing member of insurance claim experts for United Policyholders who advocates for property owners.
Q. The restoration company who repaired our home after an attic fire caused a contamination of fiberglass insulation by improperly clearing and cleaning the attic from smoke damaged insulation. We know that the restoration company should be the one to take responsibility and maybe even use their General Liability Insurance, however instead they went out of business. We have talked to several lawyers and they say we have no recourse with our property insurance carrier. We feel that our insurance company should take responsibility and make the restoration company who messed our home up pay to have it cleaned up properly. Does an insurance company have to use bonded and general liability covered contractors?
A. Your question about insurance companies vetting contractors to make sure they are bonded and have general liability coverage is a good one that all property owners should check and verify before any restoration work starts. As each insurance company has set and no doubt codified in their claims practice and procedures manual, I cannot tell you if they are required as their business practices will be proprietary. You should do a little investigation and see if this contractor was on the list of this insurance company as a PREFERRED CONTRACTOR. Most all insurance companies that I have dealt with over the years maintain a list of contractors that have been vetted and thus are trusted by the insurance company so as to recommend them to their policyholders after a loss. My guess is that if your company sent this contractor out, they may have been on the preferred list.
Also a lot of contractors we deal with make it a habit of sending out their certificate of insurance to show they have proper coverage. I think they view this as a marketing opportunity to keep their name in front of potential clients. I would not give up on bringing your insurance company into this especially if they sent you one of their preferred contractors. In addition, you may in fact have a new loss, i.e., contamination of fiberglass. Have you checked with an attorney who specializes in first party property insurance claims? If you have an all risk policy and the exclusions do not take away coverage, you may have a shot at bringing in your own insurance carrier to cover the loss and damages of fiberglass contamination. If covered, they can pursue subrogation against the contractor and/or their insurance company. Your insurance company has the money and talent to get their money back. Good luck and do not give up on this!
If you have questions regarding any property insurance claim related issues please call 800.321.4488 or contact us to submit a question to one of our public adjuster or insurance claim experts.