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If I understand your question properly, it's understandable why others didn't quite comprehend it.

I believe you are referring to when one has a loss, and makes an insurance claim, what happens if the insurer controls the repair process and underpays the repairs and as a result you have an improperly repaired property which may lose value (diminished value), requires costly re-repairs and causes for further out of pocket expenses such as substitute rentals, temporary living quarters etc.

It is reasonable that should an insurer fail to properly indemnify you, where coverage is applicable and you have properly submitted your claim and proof of loss, and met with all policy provisions, you would have legal recourse under a breach of contract issue for the harm and damaged caused by the insurer's actions, or lack thereof. Some restrictions may apply such as contracts/policy provisions which may have ACV (Actual Cash Value) coverage vs. Stated Value Policy (a agreed upon fixed dollar value) etc.

Bottom line, the insurer has a contractual duty to provide you the coverage you secured, anything less and they enjoy undue enrichment and have failed to meet their contractual and fiduciary responsibilities to the policy holder.

Caution, there are no obligations to mandate that an insurer advise you of what you may be entitled, but once asked, they must be truthful.

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โˆ™ 2011-08-16 22:35:32
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Q: What is the legal responsibility of insurance companies to be forthcoming about repairs?
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Just contact your Home Insurance Company and ask them about it. Many companies are fine with this for small claims or minor repairs.

What do you do if your insurance claim is paid and it is not enough to cover the repairs?

This answer can be very involved. Most simply, you should attempt to get your insurance adjuster and the repairer to agree on the cost of repairs. Insurance companies issue 'supplement' payment on claims regularly.

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In my experience, in a number of countries, Auto Insurance companies will not pay for repairs unless the repair is result of an accident. Then only what the car is worth.

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A dispute of repairs resulting from an accident should be directed to the Shop that made the repairs. The insurer is responsible for paying for the agreed amount for the repairs. However it is the Vehicle owners responsibility to choose a reputable repair shop of choice and the Shops responsibility to provide a quality of work acceptable to the vehicle owner. The insurance company who paid the repair bill is not further liable for poor quality of workmanship ptovided by the repair shop nor for a poor choice of repair facility on the part of the vehicles owner.

Will you get a final check after all repairs are completed from the insurance company?

Some insurance adjusters will write you a check for the immediate repairs that are noticeable, However generally there are many repairs the adjuster does not notice until after the job is complete and or the job costs more than what he has allocated in any event you have the right for a reconsideration on all aspects. If the insurance company fails to fund as needed contact your state commissioner of insurance he/she will be glad to investigate the insurance company .(Insurance Companies worst nightmare because if they have many complaints the insurance commissioner can bar them from soliciting or providing insurance with in the state. Hope this helps

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Is there homeowners insurance for a home that needs repairs?

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Is your insurance affected for car scratch?

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