Can insurance hold contractor profit

UPDATED: Sep 30, 2022

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Can insurance hold contractor profit

I recently had a insurance claim on my house, I did many of the repairs myself,
instead of using the insurance contractor. The insurance company doesn’t want to
pay the profit portion of the estimate, which they would have paid to the
contractor. They paid everything else, but want to hold the 10 allowable profit.
Can they do that?

Asked on September 28, 2016 under Insurance Law, South Carolina


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

Yes, they can do this. The law does not let you profit on your claim--you just get reimbursement of your costs. A contractor would have charged you for his profit; his profit becomes your cost, which you are reimbursed for. But if you did the work, you were not charged the profit, so your are not reimbursed it.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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