When dealing with water damage in a townhome where the property management company holds the primary insurance policy, you should approach the negotiation carefully to ensure that the repairs are handled properly and to your satisfaction. Here’s how you can negotiate the bid under these circumstances:
1. Review the Insurance Policy and Coverage
• Understand the Policy: Request a copy of the insurance policy or the relevant sections that detail coverage for water damage. Understand what is covered, including any limitations or exclusions.
• Identify Responsibilities: Determine whether the water damage falls under the association’s responsibility (structural damage, exterior, common areas) or your personal responsibility (interior finishes, personal belongings).
2. Report the Damage Immediately
• Notify Property Management: Report the damage to the property management company immediately. Provide them with detailed information and any photos or documentation of the damage.
• Document the Damage: Take photos and videos of the damage before any cleanup or repairs are done. This documentation is crucial for the insurance claim.
3. Obtain Multiple Bids
• Get Your Own Estimates: While the property management company may have preferred contractors, it’s a good idea to get your own independent bids from licensed and insured contractors. This gives you a baseline to compare costs and ensures the work is fairly priced.
• Compare Bids: Review the scope of work and pricing from all contractors. Ensure that all bids cover the same work and materials.
4. Engage with the Property Management
• Discuss the Bids: Present your preferred bid to the property management company. Explain why you prefer this contractor and how their bid is more favorable (better materials, more comprehensive work, better price).
• Negotiate: Be open to negotiation. The property management company may be willing to work with your preferred contractor or adjust the bid from their contractor to meet your needs.
5. Understand the Process
• Insurance Adjuster: An insurance adjuster may be involved to assess the damage and determine the scope of work. Ensure you’re present during this assessment to point out all areas of concern.
• Approval Process: Clarify the process for approving the contractor’s bid and getting the work started. Understand any timelines and who will be overseeing the repairs.
6. Negotiate Terms
• Quality of Materials and Workmanship: If the property management insists on using their contractor, negotiate on the quality of materials and workmanship. Make sure the repairs meet your expectations and that you’re comfortable with the contractor’s reputation.
• Out-of-Pocket Costs: If there are any costs not covered by the insurance or association, negotiate how these will be handled. Sometimes, upgrades or specific preferences might be at your expense, so understand the financial impact.
7. Get Agreements in Writing
• Confirm Details: Ensure all agreements, including the scope of work, materials used, timeline, and payment responsibilities, are documented in writing. This protects you in case of disputes later on.
8. Follow-Up
• Monitor the Work: Once work begins, regularly check in to ensure that it’s being completed as agreed. Address any issues promptly.
• Final Inspection: Before making any final payments, inspect the work to ensure everything was completed to your satisfaction.
By being informed, proactive, and communicative, you can better navigate the negotiation process and ensure that your home is properly restored after water damage.
