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Question DetailsAsked on 6/20/2015

If my HO insure gives me a check for 20% of my total repair, do I owe it to my GC if it's not in our contract?

My GC never said a word about paying him 20% more until the job was almost done. It is in NONE of our change orders nor does it state in the original contract that I will have to pay it. I will be getting a check from my insurance in this amount , but again I was never asked to pay it in any of the paperwork from my GC!

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1 Answer


If your contract says he will do the job for the adjusted insurance payment (presumably plus your deductible and usually plus any depreciation or amortization, so he would be getting the adjusted value of the loss) then that would presumably be part of that payment and due to him. This would be the normal sort of contract written by a storm-chaser - signing you up to assign your insurance beneits to him and he accepts the insured loss amount from the insurance company, collecting their payments, plus almost certainly the deductible amount from you as well (as generally required by law) and generally the amortized or depreciated value as well.

If he gave you a firm contract price not stipulating him getting the insurance proceeds as his payment, then that contract price is your agreement with him - whether you get insurance payments because this work was the result of insured losses is none of his business in that case. He gets paid the contract price (including any APPROVED change orders) same as if this was just a standard remodel job not related to an insurance claim. This latter one sounds like your case - sounds like the 20% is likely the adjusted claim amount minus your depreciation/amortized amount and minus your deductible.

If the latter, it is possible your contract calls for payment to him of amounts (as progress payments ) when you receive insurance payment - in which case he still only gets the contract amount in total, but when you receive insurance checks (commonly 1 or 2 total) then that same amount would have to be paid to him at that time, up to the total of his contract amount. This sort of proviso is sometimes put in (though dangerous to the contractor) so the customer does not have to pay until the insurance payments come through. Puts the contractor at severe financial risk in event of delay int he checks or insurance company argument about the legitimacy or amount of the claim, because he does not get his money till they pay.

Answered 2 years ago by LCD

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