How to get storm damage repairs for an insurance claim
8 Things to know before hiring a contractor for storm repairs
Insurance can be a real godsend if your home receives storm damage, but it only writes the checks. It’s up to the homeowner to get the work done and finding good, reliable contractors can be a challenge. You want to know the work will be done correctly, timely and completely. If a problem turns up later, you’ll need to be able to get in contact with the contractor to make it right. Many property damage claims are made after a major catastrophe and local contractors are quickly booked up. Out of state companies come in to fill the demand. The question is, who can you trust? Here are some general tips to reduce your risks and have a more favorable outcome:
1. Make sure your contractor is licensed in Iowa.
Why is important to have a licensed contractor? If you hire an unlicensed contractor, you are assuming more risk. You become the de facto general contractor and are responsible for the quality of work and it is in compliance with the local building codes. Ask for their Iowa license number and verify by looking it up on the Iowa Workforce Development site. You can search by registration number or by contractor/business name. Search for an Iowa contractor.
2. Ask for a certificate of insurance.
They should have both:
- General liability insurance
- Workers compensation insurance
Without workers compensation insurance, you could be held liable if a contractor or their employee is injured while working on your property. If your contractor were to accidentally damage your neighbor’s property when working on your house and they don’t have general liability insurance, you can be personally liable. The certificate of insurance should be in the name of the business doing the work and the effective dates of the policy should cover the time your work is being done. Look for a minimum of $1M in liability coverage.
3. Check credentials.
- Talk to references. Make sure they are not outdated, their work should’ve be done in the last few years.
- Do a Google search and check several sites, including BBB.org. Look for user reviews and beware of anyone with too many complaints.
- Ask how long they have been doing this kind of work (both as an independent contractor and working for someone else).
4. Get a detailed, written estimate.
It should include everything on your insurance estimate (unless you hire multiple contractors). Don’t allow unlimited or unspecified rates for labor or material. They should refer to your insurance estimate for materials and give you a flat fee.
- Upgrades or work outside the scope of the insurance estimate should be approved by your insurance adjuster especially if you’re going over your budget.
- Ask about Class 4 impact resistant shingles. Have you noticed that not all roofs in your neighborhood are damaged the same? It may be some have newer or higher quality shingles. Class 4 shingles cost more than standard shingles, but they can help prevent the need for re-roofing after every storm saving you from another insurance claim. Many insurance companies give generous discounts, up to 15%, for Class 4 shingles so the extra cost can be negligible. Not all roofers will suggest it because repeat customers are good for their business.
5. Get a general timeline.
Depending on the extent of the damage, a delayed schedule can expose your home to further damage. Make sure you are in agreement on the timeline.
6. Know who’s doing the work.
Will they be doing the work with their own crew or subbing out all or part of the work? Check the sub’s credentials as well.
7. Ask about warranties.
Not all contractors will guaranty their work. If one does, get the details in writing and make sure you are able to follow up with them years down the line.
8. Don’t pay in advance.
I’ve been burnt by this personally and had to pay legal fees to get my money back when the contractor abandoned the job. No more than 15% down should be necessary to secure your place on their calendar. If they don’t have good credit with their material vendors, that’s a red flag for you.
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Rental Car Coverage: Accept or Decline?
Posted by Ed Faber on December 26, 2016Insurance tips when renting a car
Probably the most common question I’m asked as a local insurance agent is, “Should I buy the insurance from the rental car agency or just use my auto insurance policy?” Which coverage should I get and under what circumstances can I more comfortably decline coverage? Let’s get right to my answer first and the reasons why later:
My opinion is you should accept the Collision Damage coverage (which covers physical damage to your rented vehicle), even if you have full collision and comprehensive coverage. You may decline the other optional coverage (see descriptions below) provided of course your auto policy has adequate limits for liability, medical payments and roadside assistance, see descriptions below. I feel that liability limits of 100/300/100 or higher are best for your auto policy.
Let’s say you do have so called “full coverage” insurance, meaning liability plus physical damage coverage, on at least one vehicle you own. Isn’t damage to a car you rent for short-term use covered under your collision and comprehensive coverage anyway? Why should you pay extra at the rental agency for a Collision Damage Waiver?
When you sign the contract at the rental agency, you are accepting responsibility for any damage to that vehicle that occurs while it is in your care custody or control. That’s why you do “a walk around” with the rental agent before and after you rent your car. Damage isn’t limited to just an accident as you are also responsible for hail damage, door dings, rock chips and any other damage that could occur.
Yes, your auto policy’s collision and comprehensive coverage can cover this types of losses to a rental car however there are a few coverage gaps which you should be aware of:
If the above items are not covered on your owned vehicle, they won’t be covered on a rented vehicle either, leaving you to pay out of your own pocket. Even if your auto policy does cover these type of losses (and some policies can), you would still be responsible for your deductible amount, which is typically the first $500.
The collision damage waiver can cover all physical damage (subject to the conditions of your policy) to your rented auto and without a deductible. I understand that rental agencies in some states may offer a cheaper version of collision damage waiver that does have a deductible, in which case I suggest that you get the no deductible option. There’s also the convenience factor of not having to go through your insurance company for the claim.
Does an accident on a rental car go against my driving record?
Some people think that if they have an accident and the claim is paid by the rental car coverage rather than by their personal auto insurance, the accident will not show on their driving record. This may not be the case. Insurance companies check your Motor Vehicle Report (MVR) which is generated from police reports included violations and accidents. Insurance companies also run a Clue report. Clue is a database to which insurance companies report their claims. Even if you don’t report the accident to your insurance company, it could still show up on your MVR if there was a police report.
Below is a general description of typical coverage options offered by rental car agencies. See your rental car contact for specific information for your vehicle.
Common coverage options offered by car rental agencies:
*Rates stated are for examples only. Quoted from Enterprise in Cedar Rapids, IA, 2016.
The policy language on your personal auto policy is usually more comprehensive with fewer exceptions or coverage gaps when it comes to your liability and medical payment coverage. Therefore, you can more comfortably decline the SLP (liability), PAI (medical) and RAP (roadside) coverage options when you have adequate coverage on your personal auto policy. AAA auto club for example, give you roadside coverage in any auto you are traveling in, not just the vehicles you own.
Additional car rental tips:
Your auto policy does not cover you in most foreign counties. Auto policies generally only cover you while driving in the US and Canada. Check with your insurance agent if you have any coverage in the counties you’ll be traveling in. In this case, it may be best to accept all the coverages offered, including SLP and PAI.
Don’t assume your auto policy coverage covers damage for any and all rented vehicles. Most auto policies exclude all physical damage to larger vehicles such as moving trucks, large passenger vans and other commercial vehicles. Check with agent if you are renting something other than a passenger car. To learn more about your auto coverage, contact your local insurance agent.
Disclaimer:
The views and information in this blog are the opinions of the author, given for general educational purposes only, not to provide financial or legal advice. Policies and regulations vary by company and by state. Please consult your insurance agent and policy for your specific situation before making any insurance decisions.
Tags: Car rentals, cedar rapids, collision damage coverage, insurance tips, iowa, rental car insurance
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