real-estate insurance
Do I sue the insurance company or the insured contractor for home damage?
<p>I have an investment mobile home built in 1972 which I paid $2,000 for sitting on an empty storage lot next to boats, vehicles and other trailers. I spent the summer remodeling it at a cost of $8600. I am a licensed and insured general contractor. 4 weeks ago a tree pruning contractor fell a big one right in the middle of it, cutting it half and totaling it as well as totaling several other's vehicles, trailers and boats. This contractor was insured. However, his insurance company is insisting on ACV (<a href="https://en.wikipedia.org/wiki/Actual_cash_value" rel="nofollow">Actual Cash Value</a>) for the trailer only not including any renovations, to a total estimate of: $2800 (estimated via NADA in "Excellent" condition)</p>

<p>They won't negotiate. Who do I sue in small claims court for the depreciated value of the renovations? The contractor or his insurance company?</p>

<p>State: Montana</p>

<p>You sue <strong>BOTH</strong> the contractor <strong>AND</strong> his insurance company.</p>

<p>Your interest is in being made whole. It doesn't matter who pays you — whether the contractor pays or the insurance company pays. As long as you are made whole. One scenario you want to avoid is holding a judgment against a contractor who doesn't have the money to pay you then turns around and claims bankruptcy or skips town. That's why you sue both. You want to have a judgment against the insurance company too in case the contractor can not or does not pay you.</p>

<p>Also, check your jurisdiction but you might need to sue in Circuit Court because the limit of jurisdiction for small claims court might be set at $5,000 as it is in many jurisdictions.</p>

<p>You should sue for the highest amount possible. Then negotiate downward if warranted. Your invoices for materials and labor from your recent renovations and any photographs you might have taken would be your evidence to support your claim exceeding the ACV.</p>

<p>If you sue them, they will negotiate.</p>
