Contractor Key for Homeowners Rebuilding After a Disaster
Before you begin, Bob Tuck, president of Atlas Heating and Air Conditioning, suggests you may want to consider whether rebuilding is even a good idea. “It doesn’t always make sense for you to rebuild. Sometimes, you are better off buying elsewhere.”
Tuck says many homeowners faced with rebuilding are not necessarily ready for what that entails. “Particularly if the disaster was widespread, you have to think about what your neighborhood will be like. Do you want to be in a construction zone for the next four to eight years? In the case of the Oakland Hills fire, there is construction still going on, 12 years later.”
Of course, most homeowners will not start the rebuilding process until the check arrives from the insurance company, which allows them to rebuild. Attorney Arnold R. Levinson says it may take some doing to reach that step. “When it comes time for a claim, don’t assume the insurance company is going to be your friend. It is going to offer as little as possible to settle your claim.”
Levinson says this is why it is very important to keep documentation of all of your household belongings, and the house itself. “Keep your documents together, and keep a log of phone calls, of what happened on which day, etc.”
Levinson says it is common to be asked for a recorded statement, but homeowners should remember they have a right to a copy. “Be sure and get a copy of the statement. That is important to do.” Further steps by the insurance company may be a reason for alarm, however. “If you are asked to take an exam under oath,” he explains, “then it is time to get an attorney. This means they are suspicious of the claim, and they think it may be fraudulent.”
Once the insurance company issues the check, however, a homeowner needs to pay attention to other details when rebuilding their home. “You want to bring a good set of plans, so the contractor and sub-contractors can give a good estimate for replacing your home,” Tuck notes.
Choosing a contractor is important, and choosing the wrong contractor can lead to problems. “About one in 20 homes rebuilt in the Oakland Hills are under some sort of litigation now,” Tuck explains, “while another one in 20 are experiencing problems of some sort.”
To avoid problems, Tuck recommends asking the general contractor what types of work they have done, and stick with a contractor who has been building homes. “Particularly in a massive loss of homes, as in the case of the Oakland fire, everyone jumps in and offers to rebuild your home. Some contractors did kitchens, and then started building entire homes,” he explains.
The volume of homes a contractor is currently working on is another gauge. “Other contractors, prior to the Oakland Hills fire, were building one or two homes per year. After the fire, they were building 10-15 homes per year, and the quality went down. Some just got too big too fast. You want to be sure the contractor has been doing what they will be doing for you, and remember that there is a 12-year statute of limitations on construction defects liability.”
Tuck notes that, when soliciting bids, you can specify that the contractor will use a particular sub-contractor you trust. “For instance, our customers could say to a general contractor, I’d like a bid, and you have to use Atlas Heating for the HVAC’ [Heating, Ventilation, and Air Conditioning],” Tuck explains. “If you have someone you trust who does a particular job, don’t be afraid to require them as a sub-contractor when you seek bids.”
Lastly, Tuck says homeowners should not be afraid of using union contractors. “Homeowners worry when they hear the phrase ‘union contractor’, because they think they are going to pay too much — but it couldn’t be more different than that,” he says. “With union contractors, you have people who are well-trained. The estimate is accurate. The work is done well, and on budget. It is the poorly trained contractor who will provide a bad estimate and, in the long run, prove to be more expensive.”
