The Dangers of Right to Repair Clauses in Your Insurance Policy
When you file a claim with your insurance company after your property has sustained damage, the insurance company may elect to invoke its “right to repair” clause under your policy. These provisions may seem innocent enough at first glance. However, a “right to repair” clause may give an insurance company total authority in choosing which contractor to perform repairs covered under the insurance policy. In other words, you may lose control over selecting a reputable contractor who performs quality work.
Insurance companies are heavily invested in protecting their bottom line and ensuring they pay the minimal amount when covering your damages. After invoking its right to repair, an insurance company may look to hire contractors who will work for below-market, lowball, cut-rate prices in order to save money. This practice almost always leads to substandard work that will jeopardize your property’s future durability. In some circumstances, the insurance company and contractor may share corporate officers or have an exclusive business relationship. This inevitably calls into question the contractor’s objectivity in assessing the scope and quality of work.
Many individuals make the mistake of not reading their insurance policy in full, assuming that the insurance company will provide total relief in the event that disaster strikes. Insurance companies are aware of this and take advantage of consumers by injecting provisions such as the “right to repair” clause into their policies.
When consulting with your insurance company about purchasing coverage that fully protects you, be sure to contact your insurance agent regarding the “right to repair” clause. If your property has been damaged, do not hesitate to contact our office so we may assess the scope of damage and any coverage that may apply. Even if your insurance policy contains a “right to repair” clause, we may challenge the applicability and validity of the clause if the insurance company fails to follow certain steps. We may also be able to ensure levels of quality control with the insurance company’s selected contractor.
This blog discusses general scenarios; and each policy, claim, and case are different in their own respect. If you need assistance or have questions about an insurance claim, call one of our experienced attorneys for a free consultation.
Patrick Cassady, Esq.
Learn more about Patrick here!
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