Contractor insurance fraud

[shawnna]

What is the name of your state?North Carolina

 

[Just Blue]

What is the name of your state?North Carolina

We will need more information to assist you.

 

[shawnna]

Our condo management company used its contractor to do repairs after Hurricane Florence. Our HOA refused to pay insurance funds for fraudulent charges made by that contractor. He put liens on every home. The management company that uses him said that we could not file claims of fraud with our insurer since it was not a liability claim and that we had to hire an attorney to fight the bogus liens. Why can't we tell our insurance company that he was deliberately padding his claims and his attorney has billed us more than $675,000.00 in legal fees.
What's even more troubling is that our HOA sent the contractor a letter stating that we would not pursue further action if he accepted our offer It's like saying "we know you tried to commit a crime but, we'll look the other way."

 

[zddoodah]

The management company that uses him said that we could not file claims of fraud with our insurer since it was not a liability claim

That makes zero sense.

Why can't we tell our insurance company that he was deliberately padding his claims

You are free to tell anyone anything you want. Is this really the only question you intended to ask?

his attorney has billed us more than $675,000.00 in legal fees.

Huh? Why is his attorney billing you anything?


Folks on an internet message board who have no ability to review any relevant documents are unlikely to be able to help you make sense of what's going on. Your HOA board needs to make an effort to do so and, if they can't, it may be necessary to retain legal counsel.

 

[HighwayMan]

Our HOA refused to pay insurance funds for fraudulent charges made by that contractor.

I don't understand this. What "insurance funds"?

 

[ALawyer]

It would seem as if there is far more than a sufficient amount of money at stake -- in terms of the liens against your homes and the potential charge for the contractor's legal fees -- for the homeowners to chip in and retain a lawyer to advise the group and represent your interests. Whether there is or should be a claim against the homeowners association's management company, the contractor, your insurance carriers, etc. is something a qualified lawyer should be able to figure out rather quickly. Right now you are all flying blind and alone, and acting collectively is the first step in finding an appropriate solution.