Q: I have never signed an estimate, quote, or contract with a company. Am I legally obligated to pay an invoice I dispute?
After Hurricane Ian a company recommended by my insurance company came to door and said they were hired by insurance company to dry out the house. They were able to identify the insurance company and our claim number. They assured us the insurance company was paying for their service and that we would never receive a bill. After the work was complete the insurance company said they were not responsible for these charges, but we never received an invoice so I thought insurance had covered it after all. The work was done in October. On June 20 we received an "overdue" invoice for over $26,000 from the dry out company. We have never signed any paperwork with dry out company (estimate, quote or contract) Do I have to pay this invoice? Amount is also ridiculous since flood insurance pays $1.25 per sq ft which would be $2500 for our house. Don't know how they came up with $26,000 because we have received no details and cost was never discussed as insurance was supposedly paying.
A:
It would be a good idea, either on your own or through an attorney, to immediately dispute the bill in writing, with proof of delivery; otherwise, you might be sued for Account Stated, which is a suit to collect on an undisputed bill. State reasons for the dispute, including that you never would have permitted the repair company to touch your property if they had not assured you that they had already arranged for insurance to cover it 100% at no obligation to you. But even with a disputed bill, you might be sued for accepting the benefits of the work without the repair company being compensated, with them disputing your version of the communications. If you are sued or are threatened with suit, schedule a consultation with an attorney.
Another issue here is the reason your insurance co. denied the claim - that reason may or may not have been lawful. The insurance company must point to a specific exclusion in the policy, and the facts must support their reliance on that exclusion. You probably received a letter from them about the exclusion; if not, you need to confront the insurance company about it. If they send such a letter, but it's not crystal clear that the exclusion should apply, you have a potential claim against the insurance company to indemnify you if you happen to have any responsibility to the repair company.
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