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Ask Law Educator, Esq. Your Own Question
Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Personal Injury Law
Satisfied Customers: 115462
Experience:  Licensed Attorney. Over 20 years experience in personal injury and law enforcement.
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If the party is having work done, that was not involved in

Customer Question

if the party is having work done, that was not involved in the incident, by the contractor who is doing repair work, resulting from the incident, is that considered fraud? Also if the contractor listed items in the bid for repair that are not being
done on the repair site, but another building, is that fraud also?
Submitted: 1 year ago.
Category: Personal Injury Law
Expert:  Legal-Kal replied 1 year ago.

Hello:

Could you add a little more detail so I can try to help? I'm having some difficulty in understanding the question. Especially since it seems like a fraud issue rather than a personal injury matter.

Customer: replied 1 year ago.
A building was damaged by a fire, the other building as not. The contractor included material on the bid, that is being used for remodeling in the building that was not involved in the fire. Assuming the insurance company is paying for replacement, should this be reported as fraud? I am not sure if the insurance company follows up to see the work that was supposed to be done? Or if they usually pay the homeowner based on the bid and are done with it?
Expert:  Law Educator, Esq. replied 1 year ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.
Yes, if the insurer paid for repairs to the damaged building, it is insurance fraud to use the money to repair the undamaged building. The money from the insurer needs to be used for the repairs required for the building damaged by the fire. Once the damage to the fire damaged building is repaired, if the owner was able to do it for less than the insurer paid, the additional money from the insurer can then be used for anything the owner wants to use it for.
So the key as to whether or not it is fraud is whether or not the necessary repairs are made to the fire damaged building. If all necessary repairs are properly made to the fire damaged building the owner can use whatever is left on the other building if they choose or they can keep the leftover money. All the insurance company cares about is if the proper repairs are made to the damaged building and again if the owner can get them made for less than the insurance adjuster provided, the additional money goes to the owner to use as they see fit.