Can insurance hold contractor profit

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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

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 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.


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