Repair rights guarantee compensation to the owner of the insured, but damaged property. The right to repair is a clause that has been included in some insurance policies.
Steps to be taken by property owner that plans to exercise a right to repair
Contact insurance agency and describe scene of property-damaging accident: Make notes of scene as soon as possible. If accident has taken place on a road or highway, call the police. If damage was linked to loss of property (theft), call the police.
Review names of witnesses and try to contact each of them. Get an estimate for the repair costs: That could reduce the need for an inspection of the damaged property. Seek follow-up on claim by calling insurance company and speak with a personal injury lawyer in Waterloo, especially if one of the following has taken place:
—The other party has denied liability for the accident, and the associated damages
—The insurance company has alleged that you are partly to blame: According to them, you helped to contribute the creation of the property-damaging incident.
Expect to receive some money, once the insurance company has sent a check to your lawyer.
A closer look at the right to repair clause
If an insurance policy were to contain that clause, then, following a report of damage to insured property, the company that had sold the policyholder that particular policy would have the right to hire its own contractor. Furthermore, the insurance company would pay the contractor directly, instead of providing the policyholder with financial compensation.
The right to repair clause deprives the policyholder of the ability to control the amount of money that is spent on repairs. The highlighted drawback in the right to repair clauses has failed to mention the fact that there has always been a right to inspect clause.
Few policyholders have given much thought to the thoroughness of a scheduled inspection, in response to a report about damages to the insured items. Yet, a lazy or unobservant inspector could overlook some aspect of the damage. Moreover, that could make it necessary for the same policyholder to make a future report.
The same series of events could take place if the owner of an insured vehicle chose to use the repair shop that had been suggested by the insurance company. Indeed, that is what happened to one man, after his automobile had been rear-ended.
He had it fixed at the recommended location. Then on the night that he took it out for the first time, it started to smoke. He had to have it towed back to the repair facility, with the insurance covering the costs. In other words, the insurer had to arrange for 2 payouts in one year.