Change Orders on Insurance Jobs: What's Normal and What's a Red Flag

A change order is a written change to the job after you've agreed on the original work. On water and fire damage repairs, some change orders are normal. Others are how a fair price turns into a surprise bill.

In the Google reviews we read for water damage companies around Elk River, surprise charges at the end were one of the biggest complaints. A few people said they were billed for work that was never done. One ended up with a lien on their house. Here's how to tell the difference.

When a change order is normal

  • Hidden damage. Once the wet drywall comes out, there's sometimes more: rotted subfloor, a cracked drain line, mold behind a cabinet. Nobody could see that before the walls were open.
  • Your upgrades. You decide you want better flooring or new cabinets instead of matching the old ones. That's your choice and your cost.
  • Code items. Sometimes the old work didn't meet today's code and has to be brought up when it's put back.

On an insurance job, hidden damage usually goes to the adjuster as a supplement: the contractor sends photos and an updated estimate, and the insurance company reviews it. Questions about what your policy will pay for go to your insurance company or agent.

What Minnesota law says

Under Minnesota Statute 326B.809, a licensed residential contractor's agreements, including change orders, have to be in writing. Each one needs a summary of the work, the materials, and the price, and it has to be signed and dated by you and the contractor. You're supposed to get a signed copy at no charge.

So if a contractor tells you about a change out loud and then bills you for it later, that's a problem.

Red flags

  • Changes you hear about for the first time on the final bill.
  • "We'll sort out the price later."
  • No photos of the hidden damage.
  • Work started on a change before you signed anything.
  • A contractor who offers to cover or waive your insurance deductible. That's illegal in Minnesota under Statute 325E.66.

What to ask up front

  • How will you tell me if you find more damage?
  • Will every change be in writing with a price before you do it?
  • Will you send the photos to me and my adjuster?

How we handle it

If we find more damage once the walls are open, we stop, take photos, show you, and send the update to your adjuster before doing any extra work. Anything you choose to add or upgrade is priced in writing before we do it. Nothing gets added without you knowing.

More on how we work with insurance is on our insurance claims page.

Call or text Ben: (612) 991-5525 any time, day or night.

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