Legal Question in Insurance Law in Massachusetts

Home Damages, and Insurance won't pay estimate

Four months ago, a cable installation company subcontracted by a major company drilled two holes through my bedroom wall into my shower directly underneath the faucet. The holes are duct taped, but the tub is not usable, only the shower; and I risk doing water damage to the condo below. I have two estimates, one I was told I had to get($3400), and one from my contractor($4850). The insurance company for the subcontracted company is now telling me that my tub is worth $1400 with $300 dollar for depreciation, so they will pay me only $1100. My own research indicates that the tub and surround cost more than 1100 at Home Depot. If the insurance company is not able to meet the estimated costs of my contractor (whom I trust versus the other company who has a poor reputation), do I have any legal recourse, or do I have to pay for their mistake in order to get my tub repaired?


Asked on 9/22/03, 8:56 am

1 Answer from Attorneys
Nina Kallen Nina E. Kallen, Attorney At Law

Re: Home Damages, and Insurance won't pay estimate

You do not have to accept the cable company's insurer's offer. Your other option is to file suit against the cable company, in which you would seek replacement cost of the bathtub and the cost of installation. You may also have a claim for unfair settlement practices against the insurer which, if you win, would require the insurer to reimburse you for your costs and attorneys fees in bringing suit, and possible treble damages. The downside is that if you bring suit it can take a lot of time as well as a lot of money. An in-between step would be to make this the cable company's problem; write them that their insurer is refusing to pay for all the damage and they will have to make up the difference. They might pressure the insurance company to pay.

Nina Kallen

(617)363-0547

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Answered on 9/24/03, 2:59 pm


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