The four documents you are most likely to see
- Inspection authorization
- Permission to get on the roof and look. It should not commit you to anything else. Read it to be sure.
- Contingency agreement
- An agreement that the contractor will do the work if the insurer approves the claim, often at the insurer's price. It can be binding once the claim is approved.
- Assignment of benefits
- A document that transfers some of your rights under the insurance policy to the contractor, which can let them deal with the insurer and receive payment directly.
- Construction contract
- The full agreement for the work: scope, materials, price, payment schedule, timeline and terms for changes.
- Emergency services agreement
- A short agreement for tarping or board-up only, usually priced by the job or by time and materials.
What to sign, depending on where you are
- IfSomeone knocked on the door offering a free inspectionThenIf you want the inspection, sign nothing beyond a simple authorization. Ask to see the inspection form before they go up.
- IfWater is coming in nowThenSign an emergency services agreement for the tarp or board-up only, with the scope and cost described.
- IfA contractor wants you to sign before the adjuster visitsThenPause. You can let them attend the inspection without committing to the full job. Ask for a copy of anything you sign.
- IfYou are asked to sign an assignment of benefitsThenRead it slowly and ask your insurer what it would change. Consider legal advice before transferring claim rights.
- IfThe claim is approved and you have compared bidsThenThis is the time for a full construction contract with a detailed scope.
Contingency agreement versus full contract
Contingency agreement
- Signed early, often at the door or after inspection
- Price tied to whatever the insurer approves
- Scope may be vague until the estimate arrives
- Can lock you into one contractor before you compare
Full construction contract
- Signed after you know the claim outcome
- States materials, scope, schedule and payment terms
- Lets you compare bids line by line
- Should mention the permit and how changes are handled
Common questions
Can a contractor talk to my insurer for me?
You can authorize a contractor to share information with your adjuster without giving up control of the claim. Ask the insurer what form they accept, and keep copies of everything the contractor submits.
Is a contingency agreement always bad?
Not always. Some reputable contractors use them. The issue is signing one before you have checked the contractor and before you understand what it commits you to.
General information for Colorado Springs, not a quote or professional advice. In an emergency, call 911.