If you’re dealing with a home insurance claim, then you may have just received a large check from your home insurance company. You’re supposed to use this money to hire someone – like a contractor or remediation company – to repair your home to pre-loss condition. But you’ve got an idea: can’t you just do the work yourself and pocket the difference?
Are you allowed to do your own home repairs after a home insurance claim?
In most cases, the answer is yes: you’re allowed to complete your own repairs on your home. Your home insurance company has sent you a check for the estimated cost of repairing the damage to your home. That check typically takes into account the cost of labor. You might be able to save money by completing the repairs yourself and pocketing the difference.
However, there are certain things to consider before doing the work yourself, including:
- If you’re still making mortgage payments, then your bank may require you to fix your home with a reputable company. Your bank technically owns part of your home. If you repair your home on your own, and you fail to adequately repair it to pre-loss condition, then future insurance claims may be invalidated.
- Home repairs are more complex than many people realize. Sure, removing a mold problem might look as easy as tearing out the discolored piece of drywall and replacing it with a clean panel. In reality, however, home problems can be more complex – and more expensive – than you realize. If you’re not 100% confident in your home repair abilities, you might be better off letting the professionals handle this one.
- If you repair your home inadequately today, then future claims could be invalidated. Let’s say you mess up your home’s wiring when replacing your drywall. The wiring causes a fire, and your home burns down. If your insurance company finds the fire was a result of your faulty work, then your claim could be in jeopardy.
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