Home Repair Costs and Insurance

Recently a part of my parents’ roof was damaged in a heavy rainstorm. The insurance company is willing to pay for only $772 of the damaged little portion of the roof. However, further investigation by a few contractors revealed that much more of the roof needed fixing including replacing a main beam because of rot and damage.¬†Estimate from contractor = $6,000¬†. Now that’s a $5,000 difference that the insurance company should pay, and hopefully they will, but this still needs to be completed regardless. With a proper emergency fund, which my parents don’t have funded currently, would have taken care of this issue without headaches. They now need to figure out how to deal with this at the last moment if the insurance company does not compensate..

The insurance company sent them some contractors that they could work with and she also received some estimates from Home Depot. They seemed nice enough, but after much deliberation and checking of reviews online on contractors and the large box store, they decided to go with a local neighborhood licensed contractor that had completed several other neighbors’ roofs already. The only difference is that he came with an estimate slightly higher than the others, but with the peace of mind that he will get the work done fast and on time, with no headaches as experienced by the hundreds of people that left reviews on contractors online. Besides, they can go pester him if he’s not on the job site :)

Fingers-crossed, this will be the desired outcome.

Insurance Payment
With such a big gap in estimates between the insurance company and the contractors, a detailed list will be submitted by the contractor as to what exactly needs to be completed. This should makeup for the gap. However, if they don’t, that will mean they will need to finance it somehow out through a home equity loan (if they can get one) or borrowing from me and others. I don’t really want it to go this route as I’ve warned them that they need to start funding that emergency account, but I guess I will do what is necessary to have a roof. I’m helping as much as I can to properly request the additional funding from the insurance company until this is completed. My negotiation skills will get some additional use :) Wish me good luck!