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Can I hire another contractor after a lien was filed against my property?

Can I hire another contractor after a lien was filed against my property?

Full question:

My home owners insurance gave me money to replace my roof and for interior painting. The money was put in an escrow account by my mortgage company.The roof is finished and the contractor has 90% of the available money. The interior painting was not yet executed. After 30 days of finishing the roof the contractor filed a lien without warning me. The amount of the lien includes the cost of the interior painting nevertheless the work was not done.To get the last 10% of money from the escrow account the contractor had to issue a Waiver of lien. Again they included the amount of the interior painting as outstanding. At that point I did not yet know that they already filed a lien. (the notice came 3 days later) Needless to say I was humilated. Now I want to get another company to do the interior. Do I have the right to do so? Is the construction Lien superseded by the Waiver of lien?

Category: Contractors
Subcategory: Construction Liens
Date: 04/07/2025
State: Florida

Answer:

Under Florida law, a waiver of lien cannot be made in advance; it can only waive rights for labor, services, or materials that have already been provided (Fla. Stat. § 713.20). If the contractor filed a lien for work that was not done, that lien may not be enforceable. A waiver of lien typically discharges any filed lien, but it depends on the specific terms of the waiver. You should check the waiver to see if it includes a release of the lien. If the contractor has significantly breached the contract by filing a lien for work not performed, you may be able to hire another contractor for the interior work. Contracts are legally binding agreements, and if one party fails to meet their obligations, the other party may have grounds to terminate the contract. For clarity on the lien's status, consider contacting the county recorder's office. If you need further assistance, consult a legal professional.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

Is it illegal to use homeowners insurance money for something else?

Using homeowners insurance money for purposes other than what it was intended for, such as repairs, is generally not illegal. However, it may violate the terms of your insurance policy. Insurers typically expect the funds to be used for the specific repairs or replacements outlined in the claim. Misuse of these funds could lead to complications with future claims or even potential legal issues. Always check your policy for specific guidelines.

Can I keep insurance money for a roof?

If you receive insurance money for roof repairs, you are expected to use it for that purpose. However, if you choose not to make the repairs, you may keep the funds. Be aware that failing to use the money as intended could affect your relationship with the insurance company and your eligibility for future claims. It's advisable to consult your policy for specific requirements.

Can you keep home insurance claim money?

Yes, you can keep home insurance claim money if you choose not to use it for repairs. However, it's important to note that the funds are typically provided for specific repairs or replacements. Not using the money as intended may impact your insurance coverage or future claims. Always review your policy for any stipulations regarding the use of claim funds.

Can I use insurance claim money for something else?

While you can technically use insurance claim money for purposes other than repairs, it is not advisable. Insurance funds are meant for specific repairs, and using them for other purposes may violate your policy terms. This could lead to issues with future claims or your insurer. Always check your policy for guidance on the intended use of claim funds.

Is it illegal to keep home insurance claim money?

No, it is not illegal to keep home insurance claim money. However, the funds are intended for specific repairs or replacements. If you do not use the money as specified in your policy, it could affect your eligibility for future claims or your relationship with the insurance company. Always refer to your policy for specific guidelines on the use of claim funds.

Can a homeowner profit from an insurance claim?

Homeowners generally cannot profit from an insurance claim, as the funds are intended to cover specific losses or repairs. If you receive money for a claim but do not use it for the intended purpose, you may keep the funds, but it could lead to complications with future claims. It's important to adhere to your policy's terms to avoid any legal issues.