I'm not too fond on Insurance company laws with working with contractors but i believe that in order to get work done of $500+ that a written contract with both my signature and the homeowners should be sent to the insurance company for them to give the money to get the work done. At least this is what i though, I sent a estimate with my license number on it and a estimate of $1900 for a fence and apparently the homeowners insurance company is going to pay him the amount to get it done(1900) and he's is going to hire a unlicensed contractor to get it done for less and gain himself some money. Now these are his intentions and i don't believe he can do that this is why I'm on here, i don't want my license number used for others profit please let me know if this is possible and what i can do
I am so glad you asked this question. It actually confuses contractors and homeowners alike.
Insurance policies are contracts and they exist between the homeowner and the insurance carrier. Yes, you submitted a bid, but there is no reason that the homeowner has to hire you. This happens every day. The insurance company is not going to hire you, absent emergency services, at least this is true in my experience.
Why? The insurance company does not want to be jointly responsible with the contractor if something goes wrong. They want their insured to pay out and for the insured to hire the contractor.
The insurance company's obligation is to pay the HOMEOWNER per the policy for reasonable repairs. The homeowner establishes the cost of repair (necessity and reasonableness) by submitting a bid for the work that needs to be done.
What can you do? Nothing now. The homeowner is under no obligation to hire you. In fact, the homeowner could take your bid and do absolutely nothing with it and pocket the entire $1900 because his insurance company is legally bound to pay for, not provide repairs.
In the future: deal with the claims reps closely so that you end up actually being recommended for the job or do not bid on insurance work.
I apologize if this is a little harsh, but really there is nothing you can do about someone soliciting your services and deciding to hire someone else. Your license is only being used to established that a licensed contractor states the work will cost X dollars and needs to be done, not that you are actually doing the repairs.
No. There is nothing illegal in what the homeowner did or plans to do. He or she could have gotten 3 estimates and submitted the highest one, and then hired any person, licensed or not, to do the work. A homeowner is not required to hire a licensed contractor.
Now if you had done the same thing, used your license to prepare an estimate and then hired an unlicensed guy to do the work to maximize your profits, you would be doing something illegal.
I agree with my colleagues that the homeowner did nothing wrong.
The homeowner did not use your contractor license - the homeowner used your estimate.
This information does not constitute legal advice and does not establish an attorney-client relationship.
I agree that there is nothing you can do if the homeowner doesn't hire you after you give them an estimate. The owner is free to hire any contractor they like, or not to have the work done at all.
It is good to hear that you actually put your license number on your bid; too many don't follow that rule. Like one of my colleagues said so well, the homeowner is not using your license, just your bid. They can't pull any permits, submit any bond demands, or workers comp claims just because they have your license number.
Kevin A. Spainhour, Esq.
Our Rating is calculated using information the lawyer has included on their profile in addition to the information we collect from state bar associations and other organizations that license legal professionals. Attorneys who claim their profiles and provide Avvo with more information tend to have a higher rating than those who do not.
Years licensed, work experience, education
Peer endorsements, associations, awards
Publications, speaking engagements