If I received an overpayment from my insurance company, can I keep the difference?

I moved into a new home 11 months ago; we got hail several months later that damaged my roof. The insurance company paid for the roof replacement. I received few quotes. The roofer that builder used did the exact same roof for less than what the insurance company paid. Now insurance company wants the proof of repair before renewal. If I provide the receipts, will they come after the remaining funds?

Asked on November 5, 2015 under Insurance Law, Texas


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

Yes, you would have to repay the surplus if they ask for it, since you were entitled, under your insurance, to be paid the cost to repair the damage--not to be paid for repairs and to make a profit in the process as well. Of course, they may not ask for it, and if not, you don't need to volunteer the money.

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