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Law Educator, Esq.
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RE: Insurance Claim Contract from a company roofing called

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RE: Insurance Claim Contract from a company roofing called Lambcorp in Arlington TX. Residential & Commercial Energy Management. Contract says: The property owner named above hereinafter referred to as "Insured", hereby appoints directs and authorizes Lambcorp 1601 E. Lamar Blvd. ste 209 Arly. TX 76011 hereinafter referred to as "Contractor", to act for and on behalf of Insured in all matters relative to the restoration and renovation of damages sustained to Insured's real property whose location is described above. Insured represents that a claim has been filed that a Homeowners Insurance Carrier named above and that the Insured's Homeowners Insurance Policy provider will respond to losses through the policy number and/or claim number shown above. If insured has not presently filed a claim with their Homeowners Insurance Carrier as soon as possible and will provide Contractor with all necessary claim information. It is understood and agreed that Contractor is empowered to contact the Insurance carrier named above and meet with their representative in order to assist insured in determining the fair replacement cost value of the losses included in this claim. All negotiations and servicing responsibilities will be handled by contractor. Insured agrees that Contractor will be paid the replacement cost value that Insured and Insured's Insurance Carrier agre upon for the work necessitated by the above mentioned claim. Insured expressly agrees that he, she/they will not have another person or entity perform any of the work included in this claim and that all work will be the responsibility of Contractor and will be completed by the same. Insured is contracting company representation from Lambcorp and its resources, i.e. Inspectors, consultants adjusters, administration, software project managers, lawyers, etc. to obtain insurance full replacement cost value. If contract is cancelled after 3 day right to cancel. Insured will owe 20% of replacement cost value of entire claim. Contractor agrees to perform all construction work and to furnish all labor and materials, at least equal to and based upon the damage estimate, which the Insured and the Insurance Carrier have previouslly agreed upon. Contractor agrees that all work will be completed in a professional manner according to industry standard practices. Contractor deviations, or upgraded from the insurance Carrier's settlement, including any work required by the local building department to bring items "up to code", will be an extra cost and will be done only upon execution of a written change order signed by Insured and Contractor and will be an extra charge over and above insurance settlement and will be Insured's responsibility to pay. All checks issued by the Insurance Carrier and/or Mortgage Company in payment for the services provided by Contractor shall be done and a "Joint Check" listing Contractor and Insured as Co-payees. Insured agrees to release all monies allotted by the Insurance Carrier for each stage of the work completed. Insured agrees to provide all necessary documentation need to facilitate payment from the insurance carrier and/or Mortgage Company. Contractor agrees that the total Our-of-Pocket expenses of Insured will not exceed their insurance policy deductible fro the scope of work agreed upon by insured's homeowners insurance policy carrier and insured, unless insured chooses to alter, deviate or upgrade from the Insurance Carrier's settlement, or unless work is required by the local building department to bring items "up to code". Also to initial You, the Buyer, may cancel this transaction at any time prior to midnight of the third business day after the date of this transaction. Customer agrees to pay 20% of the entire insurance claim amount if agreement is cancelled after 3 day right to cancel period. Question: Why do I have to sign this now, before they contact my insurance company? Is this going to effect me in any way harmful? Its for roof. the notes say: Leaks in garage, pantry, den Cent Air, and outdoor wood gazebo?
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.

Many contractors use these agreements so they can deal directly with your insurance company to get direct payment and so they do not have to fight with the customer to get the money. Many customers though do not contract with the contractor first, they contact their insurance company and have an adjustor come out and file their insurance claim first to have the adjustor give them the insurance company estimate and what they will pay for the damages. If you choose to use this contractor, then they will make the insurance claim on your behalf and you would be bound to work with this contractor and cannot cancel.

I would suggest that you might want to go direct to your insurance company unless you have checked this company out with the contractor's board and attorney general's consumer protection unit and also with the Better Business Bureau. Once you get an adjustor from your insurance to come out and give you an estimate call around to several companies and have them come out to bid on your job rather than getting tied down to one contractor unless you have checked and satisfied yourself that this company is reputable and a good contractor.

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Customer: replied 3 years ago.

I really don't like dealing with insurance companies. If they refuse the Contractor will this contract still have repercussions?

Thank you for your response.

Check out this contractor well first. The insurance will not refuse to deal with the contractor as long as you have this contract with them.
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