If contractor is unable to collect money from insurance as agreed, is the homeowner responsible?

I had recently replaced siding of my house with a contractor. Before the contract was signed, all insurance related documents was reviewed by the contractor and he verbally assured that my only responsibility would be the deductible. Now the work is finished and all the checks from the insurance company along with the deductible were paid to the contractor. However, a week or so ago both of us signed an “Addendum to contract” in which he mentioned remainder balance due from the insurance company. However, insurance company refused to pay that balance. Contractor is sending me bills for it.

Asked on November 30, 2011 under Real Estate Law, Illinois


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

The problem that you have is that you signed an addendum with the contractor which he mentioned that there was a balance owed for the replacement of the siding on your home which most likely exceeds the original bid and contract amount and the amount that your insurance carrier paid on the work of improvement.

Your insurance carrier agreed to a certain amount that the replacement siding would cost and presumably paid that amount to the contractor. Sentiment is that the amount sought in the addendum is going to be your responsibility alone to pay due to your signing of that addendum that you have written about.

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