The Risks of Being an Uninsured Renter: You Could Lose it All

Did youmud sink by dark day know that if you rent a home or commercial space every item that you moved into that space is at risk for losses from fire, theft or flood, unless you purchase renters’ insurance?   That’s right…no matter the origin of the damage, your personal property is not covered under the property owner’s insurance.

We have seen first hand renters’ lose all of their property following a home fire because they did not purchase renters’ insurance.   One of our clients had significant smoke damage to her personal property after badly burning a turkey in her oven.  She was unable to afford the cost of replacing and repairing her damaged furnishings, and without renters’ insurance, she had no options but to swallow the loss.

Another client experienced a flood in their basement level rental.  Even though the flood came from a damaged water main, his personal items were still a total loss because he did not have insurance.  His landlord did have insurance..but this only protected the landlord’s property.

Another benefit of renters’ insurance is that should you be forced to temporarily move out of your home because of a significant event, often your insurance will cover the costs of moving you out and housing you while your home is repaired.  Coverage will also usually pay to clean, repair or replace your damaged property.

Some landlords make it mandatory that their tenants purchase insurance.  For as little as $10.00 to $30.00 a month, you can protect yourself from a catastrophic loss.  Don’t leave your property and piece of mind at risk.  Talk to your insurance agent today to find out more about renter’s insurance.

Disclaimer: Depending upon your personal needs and the terms of the coverage purchased the amount of coverage you are eligible for may vary. Helpers has no affiliation with any insurance broker, agent or carrier and does not profit in any manner from the provision of this advice.  We strongly advise you to contact a licensed insurance broker to learn more about the coverage options that are best for you.

Homeowner’s Can Choose Their Disaster Service Provider

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One of our biggest frustrations as a professional disaster remediation company, is when homeowner’s are given misleading information.  One of the biggest  misconceptions we see is when an adjuster or insurer tells a homeowner that they have to use certain remediation companies for their home repair.  We think it is important to preserve homeowner choice, and in this matter, Colorado law agrees with us.(House Bill 13-1062).

As a public representative, an insurance adjuster is obligated to serve the interests of their customer above all others.   An adjuster cannot direct a homeowner to any company they have a financial interest in, whether direct or indirect.    Adjusters are prohibited from activity that looks like a conflict of interest, such as referring clients to their preferred mitigation company if there is no objectivity behind the decision.

Recently, we heard of a competing company, who had responded to a weekend emergency call, made by the homeowner, being removed from the job when the homeowner’s insurance adjuster told them they needed to use a specific company.  The responding company left the job site, and the adjuster’s specified company took over.  What the homeowner did not know, is that Colorado law, prohibits this action if it is not in their best interest.   Even more unethical, is that this adjuster may have an indirect financial benefit from recommending the specified company, as their spouse is reported to be an employee of one of the specified company’s franchises.

In addition, delaying the homeowner’s repairs, by replacing an emergency response team could conceivably have led to more extensive damage.  Clearly, this was not in the home owner’s best interest and the adjuster lacks the necessary good faith protection of the homeowner.   Not to mention that the company that responded, lost a job they had been called to complete.

In some cases, the adjuster may believe one remediation company is superior to another, and may make a recommendation based upon this opinion.  They are obligated however, to be objective in this assessment.  If your insurance adjuster recommends a specific company for your repairs, know that you are not required to comply.   You may always choose who works at your home.  In fact, it might be worthwhile to ask the adjuster why they are directing you towards one company over another to make certain your best interests are being protected.