This Florida family was left with staggering $700,000 in flood damage after Costco fridge installation turned into nightmare — why ‘free’ service often costs far more than you think

A fridge installation gone wrong

Byrd’s new fridge was delivered on Dec. 2 and the installation appeared to go smoothly. But that didn’t last long.

“When my daughter got home from school that day, she FaceTimes me and says, ‘Dad, the house is underwater,’” he told News4JAX.

Byrd then discovered that Costco’s third-party installer had failed to properly install the water supply line. Rather than wrapping the extra line into a coil and taping it to the back of the fridge, they let the extra line run under the fridge — and under the wheels of the fridge — causing the line to crack and eventually burst.

Byrd has video footage of himself wading barefoot through water and sloshing around on the floor of his home. Aside from ruining many of their possessions, the flooding also caused damage to the home’s structure. The family had to move out temporarily and live in an Airbnb — all right before Christmas.

An air quality inspection revealed “significant moisture in two-thirds of the first floor of the home and an abundance of mold,” according to the News4JAX report.

At the time of writing, Byrd was still seeking a resolution from Costco and the third-party installer. Meanwhile, he’s paying out of pocket to repair his home.

“I have spent about $300,000 on repairs, mitigation, third-party charges for reports and testing and to get our belongings moved out and into storage,” Byrd told News4JAX. Public adjusters say the repairs will cost upwards of $700,000.

However, the settlement offer he received was just $175,000. He hasn’t accepted the offer, so a lawsuit may be in the cards. He has since said, after his own investigation, that his fridge was installed by an “uninsured installer sent by Costco.”

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The risks of ‘free’ appliance installation

In some cases, ‘free’ might cost more than you think. Many retailers offer free installation services as an incentive. But these installation services may be outsourced to third-party contractors, so you should ask a few questions to ensure there are no hidden fees before proceeding with such services.

For example, there may be a charge for hauling away and recycling your old appliance. If additional parts are required for installation, like hoses or adapters, those may cost extra. There may even be plumbing or electrical upgrades required — at a cost.

And, like the Byrds, it could result in poor workmanship, property damage and limited accountability.

Before scheduling an appointment, ask the third-party installer about removal and/or recycling fees, upcharges for custom fittings and any other additional charges that may apply. Also ask whether they’re licensed and insured. In some states, third-party installers are required to be licensed if they’re performing certain types of work (such as plumbing installations).

Find out who is liable if things go wrong. Do they have liability insurance that covers damage caused by their negligence? How much liability coverage do they have? What is their process for handling claims? Who is responsible for repairs if damage occurs? It’s recommended to get this in writing. If they’re uninsured, they may not be willing or able to pay for damages.

Also, understand your homeowner’s policy before having any work done on your home, even if it seems as minor as a fridge installation. Your policy may cover certain damages, but not others. And even if your insurer pays for damages, they may not pay for subsequent repairs.

If damage does occur, document the damage with photos and videos — preferably time-stamped and contact the installation company and/or your insurance company. It’s advisable not to accept any settlement offers until after you’ve spoken with your insurer — and potentially a lawyer.

If the damages are substantive — like Byrd’s fridge installation gone awry — you may want to consult with a lawyer who specializes in property damage claims, especially if multiple parties are involved and you’re unsure of who to file a claim against. You may even be able to file a claim directly with the installer’s insurance company, if you were able to obtain that information (again, you may want to enlist the help of a lawyer if this is the route you take).

Costco did not respond to News4JAX for comment on Byrd’s installation issue and the third-party installer said it was Costco’s problem to solve. Unfortunately, this vacuum of accountability has left Byrd with the bulk of the burden — and the bills to fix the damages.