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WHAT IF PROPERTY OWNER CONTRACTS YOU AND INSURER REFUSES TO PAY YOUR SUPPLEMENTS

ArizonaRecovery Options

What is the best way to protect yourself while doing insurance related work. Property owner hires you the general contractor. Insurers adjuster agrees to replace the damaged items completely. You do the work, you supplement the work. They then low-ball you. And say we are not paying your invoice. But property owner has full replacement coverage with code upgrades.

1 reply

Jan 16, 2019
I'm sorry to hear about that. It's incredibly frustrating when someone refuses to pay for work that's been performed. When construction work has been performed but gone unpaid, there are a number of tools available to recover payment. The strongest of these tools is typically a mechanics lien. A mechanics lien will tie up the project property and could even force the sale of that property in some situations. Because of this, a mechanics lien filing will get the attention of an owner (and, potentially, their insurer). For more on the mechanics lien remedy, this article should be a good resource: How Do Mechanics Liens Work? 17 Ways a Lien Gets You Paid. However, it's also worth noting that because mechanics liens are such a powerful tool, the mere threat of a mechanics lien filing can force payment. When a claimant sends a Notice of Intent to Lien to the involved parties, they will know that the claimant is serious about getting paid what they're owed and that the claimant is unafraid to do whatever it takes. Of course, there are other options for recovery outside of the mechanics lien process. When someone refuses to pay what they've agreed to for work performed, threatening specific legal action - such as under breach of contract, unjust enrichment, or prompt payment laws. When such a threat can be made by an attorney's demand letter, it tends to carry a little more "umph". Finally, if all else fails, filing a lawsuit or going to Arizona small claims court is also an option.
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