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Old 05-14-2009, 06:26 AM   #1
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Contractors - Insurance Fraud


I have a question, after the last hail storm, a local general contractor approached me for repairs. I was promised no out of pocket expenses and the contractor would bring my home back to pre storm condition for "insurance proceeds plus supplements + overhead & profit". Well, I put a third down and paid the balance off even though the contractor invoice was higher than the insurance paperwork. The contractor added expenses to the bill that I was not aware of. I ended up paying the bill. THEN, the workers who did the work came to my house to tell me that the contractor did not pay them and they were putting a lien against my house because of it! Isn't this illegal? Does anyone have any input on how I can get this situation rectified? I paid my bill and now I have a contractor lien on my house!

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Old 05-14-2009, 07:12 AM   #2
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What does this have to do with Do it yourself?

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Old 05-14-2009, 07:14 AM   #3
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it doesn't. but i'm unable to post on the contractor's page because i'm not a contractor and i want to know if anyone else has had this experience. sorry!
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Old 05-14-2009, 07:15 AM   #4
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It may not be illegal
You needed to receive a sign-off from each contractor/sub-contractor that did work on the house

It could also be a scam
I'd report him to the local police

You agreed to no out of pocket expenses
But then you agreed to

Quote:
"insurance proceeds plus supplements + overhead & profit"
That indicates out of pocket expenses
Which is it?
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Old 05-14-2009, 07:37 AM   #5
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as it was explained to me by the contractor: they took all monies that the insurance company allocated for my repairs (including work that they did not do) and any additional money they submitted to and got from the insurance company. That's why the invoice was more than my initial insurance paperwork
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Old 05-14-2009, 08:46 AM   #6
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So, have you actually seen a lien, or did they just tell you they were doing this?
First step is call the contractor and ask him "Waddahell is this all about????"
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Old 05-14-2009, 09:10 AM   #7
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The contractor nor anyone from the contractor's office is returning my calls. I've left messages with the owner, the cfo, the general manager and with the local sales manager. The subcontractor told me that he has not been paid for several jobs and that this contractor owes him in excess of $96,000. I feel bad for the guy as he did a great job ....but this just wrong in so many ways and I don't know what kind of action I can take for my property
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Old 05-14-2009, 09:15 AM   #8
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Lawyer - up.
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Old 05-14-2009, 09:21 AM   #9
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Lawyer - up.
Yup, absolutely. You can usually get a free initial consultation where they'll explain options, procedures, and cost. Good luck!
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Old 05-14-2009, 09:23 AM   #10
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this may help ....

http://www.toledoblade.com/apps/pbcs...ST41/704140324

but yes - get legal advice - and soon !
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Old 05-14-2009, 10:25 AM   #11
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On the contractual monies, you may be out of luck. However as far as the liens are concerned, although ultimately you are where the buck finally stops in financial satisfaction of all outstanding debts connected with your project, the contractor may be held in violation for not submitting waivers of lien to you.

Here in Florida (you did not state your own location) I am required to acquire waivers of lien from all subcontractors and suppliers, AND give a copy to the homeowner. To fail to do so is to put my license at risk, and open myself up for disciplinary action by the Licensing Board. To wit: Fines, suspension and/or revocation of license.

The police won't do much because this is not really their kind of problem. Your state professional licensing board are the ones that will yank his chain... hard.
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Old 05-14-2009, 03:29 PM   #12
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Would my insurance company want to know about this? These monies came from my insurance company and this contractor sent a certificate of completion to the insurance company.
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Old 05-14-2009, 03:32 PM   #13
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I would let them know
I'd still file a Police report, fraud is fraud
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Old 05-14-2009, 06:03 PM   #14
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Quote:
Originally Posted by cpa54130 View Post
Would my insurance company want to know about this? These monies came from my insurance company and this contractor sent a certificate of completion to the insurance company.
I'd absolutely tell them ASAP. Just make sure that you get all your facts, information & any documentation.

Also, get a written and signed letter with owed-totals from the Contractor that is making the claims.
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Old 05-14-2009, 10:02 PM   #15
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Talk to a lawyer, every state is different. In Texas, this guy would not have to be registered with the state, insured or anything.

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