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Can I Keep My Homeowners Insurance Claim Check and Make the Repairs Myself?

Published in Home Insurance Claims 4 mins read

Yes, you can often keep your homeowners insurance claim check and make the repairs yourself, but this depends significantly on your specific insurance policy and the nature of the damage. Many insurance companies will allow you to complete simple repairs on your own, though they may require some form of supervision or inspection.

Understanding Your Policy and the Nature of Repairs

Your ability to undertake DIY repairs after a claim is primarily governed by two factors: your insurance policy's terms and the complexity of the damage. Every policy is different, and some may have specific clauses regarding who can perform repairs, especially for larger claims.

Simple vs. Complex Repairs

The type of damage plays a crucial role in whether your insurer will permit you to handle repairs.

  • Simple Repairs: For minor damage, such as a small hole in drywall, a few missing shingles, or minor water stains, insurance companies are generally more lenient. They often allow homeowners to manage these repairs themselves, as the risks associated with quality or structural integrity are low. However, even for simple repairs, some insurers might require photographs of the completed work or an inspection to ensure the repairs meet an acceptable standard.
    • Examples: Patching and painting walls, replacing damaged flooring sections, minor roof shingle replacement, or repairing non-structural leaks.
  • Complex or Structural Repairs: When damage is extensive, involves structural components (like foundations or load-bearing walls), or requires specialized skills (e.g., major electrical, plumbing, or HVAC work), insurers are far less likely to approve DIY repairs. These types of repairs often demand licensed professionals to ensure safety, adherence to building codes, and proper restoration that prevents future issues. Improperly executed complex repairs can lead to further damage, void warranties, and even pose safety hazards.
    • Examples: Foundation repair, significant electrical system overhauls, major plumbing re-piping, roof replacement, or reconstruction after fire damage.

Key Considerations and Requirements

Before you decide to keep the claim check and tackle repairs yourself, consider the following factors and potential requirements:

Factor Impact on DIY Repair Likelihood
Policy Language Your policy may explicitly permit or restrict DIY repairs.
Damage Severity Simple, cosmetic damage is more often approved for DIY.
Cost of Repair Smaller claim amounts are more likely to be paid directly to you.
Mortgage Lender Lenders (if applicable) often require funds to be released in stages or directly to contractors for larger claims to protect their investment.
Building Codes Many repairs require permits and must comply with local building codes, which can be complex for a non-professional.
Work Quality The insurer expects repairs to restore the property to its pre-damage condition. Substandard work may impact future claims.
Supervision/Inspection Your insurer may require inspections during or after the repair process, even for simple repairs.

Practical Steps Before Starting

  1. Communicate with Your Insurer: Always inform your insurance company of your intent to do the repairs yourself before you start. This ensures you understand their specific requirements and don't jeopardize your claim.
  2. Review Your Policy: Carefully read the "Loss Settlement" or "Conditions" section of your homeowners insurance policy.
  3. Get Contractor Estimates: Even if you plan to do the work yourself, obtaining a few quotes from licensed contractors can help you understand the true cost of repairs and ensure your claim check is adequate.
  4. Understand Payment Structure: For larger claims, insurers often disburse funds in stages, or directly to a contractor, especially if a mortgage lender is involved. For smaller claims, a single check might be issued to you directly.
  5. Assess Your Skills: Be realistic about your capabilities. DIY work can save money, but it requires significant time, effort, and the right tools.
  6. Check Local Regulations: Determine if any permits are required for the repairs you plan to undertake. Performing work without necessary permits can lead to fines or issues when selling your home.

Ultimately, open communication with your insurance provider is essential. They can guide you through the process and confirm whether your specific situation allows for owner-performed repairs, ensuring you meet all necessary conditions to properly restore your home. For more information on homeowners insurance claims, you can consult reputable sources like Bankrate.