Legal Question in Insurance Law in New York

Insurance Co. Liability

Following my report of a water loss to my insurance company they write me “ IF YOR LOSS INVOLVES WATER DAMAGE “ it is imperative that you contact someone immediately to thoroughly dry your home. ...two such companies, _ _ and __ are trained in water damage restoration and are able to check for hidden moisture.''

I hired one of the two companies they mentioned, much to my chagrin. First, mold damage, which was present and photographically documented at the time of the water loss, reappeared after their restoration work–which was careless and incompletely done I later learned from an environmental consultant I had brought in. Secondly, my insurance company forwarded a building loss check made payable to the contractor and me jointly, but mailed it to the contractor against my explicit, written directions. The contractor endorsed this check without my authorization. Is the insurance company jointly liable for the damages wrought by the contractor.? The check cashed by the contractor includes payment for includes some $20K of repairs that I

paid for and sought direct reimbursement for from the Insurance company- with accompanying paid bills.


Asked on 10/22/07, 1:09 pm

2 Answers from Attorneys
Steven Czik CZIK LAW PLLC

Re: Insurance Co. Liability

This area of law is our specialty, however, we would need some more information before making a complete and proper determination. You are welcome to contact us for a free consultation.

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Answered on 10/22/07, 2:34 pm
Mark S. Moroknek Kelly & Curtis, PLLC.

Re: Insurance Co. Liability

It sounds like you may still have the option of of suing the insurance company for breach of the insurance contract. The contractor can be sued under the job contract for defective work, and unjust enrichment.

If you wish , call for an appointment.

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Answered on 10/23/07, 10:52 pm


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