insurance claim payment on invoice to contractors or directly to us???

livvy1x

my father in law has had a large flood in his bungalow with the local water company at fault. The damage is immense and we have decided to have the works done by our chosen contractors due to the insurance company already being useless. can someone tell me where we stand with regards to having the work done and payment made directly to the contractors on invoice rather than having the payment made directly to my father in law and him paying contractors on completion?
the contractors have said we are allowed direct payment rather than payment on invoice.

geri1965_2

The insurance company do not have a contract with the contractors, so would not be keen to pay them direct.

You can always ask though.

livvy1x

the invoices will be going in separately for different sections of the property i.e the driveway will be a separate invoice from the patio and garden even though the same company will be doing them. the contractor is worried about spending so much money doing various jobs and then being messed around by the insurance which i can completely understand.
It will be a large amount in total but smaller amounts per invoice

livvy1x

just to clarify , my father in law was wondering if payment could be made to him once prices were agreed rather than to the company once invoices have been submitted

InsideInsurance

Different insurers have different processes. As they are not the insurer approved contractors it is unlikely they will want to pay them directly as this then starts to create liabilities - if you use your insurers people they are obliged to resolve any problems with the repairs were as if you use your own your insurers are under no obligation (ie its your fault for having chosen them).

The last time I worked in property claims they would pay out against a quote or pro-forma invoice net of VAT in advance and would pay the VAT element, assuming the claimant isnt VAT registered, once a paid invoice was submitted.