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What can I do to have an insurance release recoverable depreciation directly to me?

We had a roof replacement with partial interior covered. The homeowners decided they wanted some additional stuff done inside. Half way through the 'add ons' the homeowner decided to stop us. Everything on the insurance scope was done add ons were not. The homeowner withheld a 1700 supplement check and now insurance will not release the recoverable depriciation. We're past the date to file a lein. I've sent out payment reminders and nothing seems to be working. For the "add ons" in order to not have more issues we just didn't charge the homeowner. We lost money on both sides.

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Jun 25, 2020

Once a mechanics lien deadline has expired, the recovery options shift. Often, a lawsuit is necessary - especially if payment/invoice reminders or other collections efforts are unsuccessful. However, despite the probable need for a lawsuit, in Texas a lien may still be an option. In Texas, construction participants who contract directly with the property owner are entitled to a Constitutional mechanics lien in a addition to a statutory mechanics lien. There are some additional benefits to the Constitutional lien, namely that it does not specifically require being recorded in order to be effective. You can get a great overview of the requirements for Texas Constitutional liens on residential projects by reading the answers to this question previously posted on the Expert Center. Long story short, if the project is not a "homestead" there are no specific recording or notice requirements, and the contractor can proceed to a lawsuit to enforce the Constitutional lien that arose automatically due to the work. If the project is a homestead, then there are some specific rules regarding notice and other actions that must be taken. Other than the potential for a Constitutional lien, the best path for recovery when invoice reminders and other collection efforts are unsuccessful, may be a lawsuit for breach of contract and/or another applicable cause of action. It is likely the best path forward to consult with a Texas attorney who can view the totality of the circumstances and set an appropriate course. However, the cost of doing so should be considered with respect to the amount still due - especially if there is no applicable clause in the contract providing for attorneys' fees in the event of litigation for nonpayment.

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