Forms you may be handed
- Work authorization
- Permission to begin emergency services such as extraction and drying. Normal and usually necessary. Read the scope, pricing basis and cancellation terms.
- Direction to pay
- Asks your insurer to pay the contractor directly or to include the contractor on the check. It affects who receives money, not who owns the claim.
- Assignment of benefits (AOB)
- Transfers some or all of your rights under the policy for this loss to the contractor. It can let the contractor negotiate with your insurer without you. Read it with care and consider getting advice before signing.
- Certificate of completion
- States that work is finished to your satisfaction. Insurers or lenders may release final payment once it is signed, so don't sign until you have checked the work and the final moisture readings.
- Mold or pre-existing condition disclosure
- Notes damage or conditions found before work started. Useful for everyone if it is accurate; ask for photos of what it describes.
Ask before signing anything
It is reasonable to ask for a copy and a few minutes to read, even in an emergency.
- Which of these forms are required to start extraction tonight, and which can wait until tomorrow?
- How will charges be calculated: insurer pricing software, time and materials, or a fixed scope?
- If my insurer pays less than your invoice, who is responsible for the difference?
- Can I cancel after emergency services and hire someone else for rebuilding? Is there a fee?
- Does any form assign my claim rights to you, or let you speak to my insurer without me?
- Will I receive copies of every photo, moisture reading and estimate you send to my insurer?
- Is there a deposit, and is it refundable?
Sign now, or ask for time?
- IfIt only authorizes emergency extraction and drying, with pricing explainedThenUsually reasonable to sign so work can start.
- IfIt bundles emergency work with full reconstructionThenAsk whether the two can be separated. You may want to choose your rebuild contractor later.
- IfIt contains assignment language or a broad power to deal with your insurerThenAsk for time. Call your insurer or agent and read it in daylight.
- IfYou feel pressured or are told the insurer requires itThenAsk your insurer directly. Insurers do not generally require you to sign over your claim to a contractor.
General information for Parker, not a quote or professional advice. In an emergency, call 911.