Insurance adjuster verbally OK’d cost of work to be done but next day, after job complete, said insurance would not pay due to finding lower quote

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Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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UPDATED: Jan 23, 2013

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Insurance Question from Quakertown, PA

Asked on 01/23/2013

Insurance adjuster verbally OK’d cost of work to be done but next day, after job complete, said insurance would not pay due to finding lower quote Can an insurance verbally approve work but then decline to pay because finding lower quotes? **contractor already got paid 6K with my credit card. I was not even told to not pay them. I had no idea insurance company handled paying them. I need this claim settled and for full amount. My agent said they would handle but I have not heard any news and have been leaving messages. Insurance is with Nationwide

Answer given on January 27, 2013

If the adjuster approved the cost of repairs and you went ahead and made the repairs, the adjuster should stand behind his original ok. You should contact him and try to work out the costs with him. It is possible that the lower estimate did not include the same scope of work that your contractor did. Ask your contractor to help you and see if they can speak to the adjuster.If that does not work, ask to speak to a supervisor and see if they will work this out with you. You may have to take a partial payment from the company to start since you have already charged the cost to your credit card. Rather than paying the contractor, you should have worked out a system to have the insurance company pay him directly, that would prevent you from being out of pocket and can avoid this time of situation. If you have an agent, see if they can help and try to work this out with the claims department.


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