Homeowners Insurance
Q. Since the hail storm, contractors have been knocking on my door. How do I find a reputable one?
A. After major hail storm events, contractors will flock to Colorado. When choosing one, protect yourself by follow the suggestions offered through the #NoRoofScams campaign.
Q. Can an insurance company non-renew my homeowner policy because of the hail storm?
A. There are no laws that address this; however, if you have had multiple losses (including hail) an insurer may consider non-renewing the policy.
Q: Only one side of my house was damaged by the hail. Is the insurer required to match the other three sides and replace all of the siding?
A. There are no laws that require a company “match” the siding or paint for areas of the house that were not damaged. The company is only required to repair or replace the actual damages caused by the covered event.
Auto Insurance
Q. My company is requiring I obtain a salvage title before releasing payment, can they do this?
A. Motor vehicle law defines a “salvage vehicle” in § 42-6-102 (17) (a), C.R.S. The definition of a salvage vehicle specifically exempts a total loss as the result of hail.
Q. What happens if another hail storm damages my vehicle before repairs can be made?
A. The insurer will assess the new damage and issue payment for damages less the initial hail storm payment and deductible. The comprehensive deductible will apply to both hail losses.
Q. What if the claim payment does not cover my loan amount?
A. The insurer pays the claim based on the market value of the vehicle at the time of the loss. If this does not cover the loan amount you are responsible for the difference. If you purchased GAP protection, this will cover the difference between the claim payment and the loan amount.
Q. My company totaled my vehicle, are they required to pay sales tax?
A. If the company pays the total loss of your vehicle and takes it, the company is essentially buying the vehicle from you. In this situation the company would pay the sales tax owed on the purchase. If you retain the vehicle the sales tax is not incurred; therefore, would not be owed.
Q. What is the state’s total loss threshold?
A. There are no laws that address thresholds. It is a business decision by the company. The Division ensures the company is complying with its own guidelines.
Q. My car is worth more than the company’s value; can the company declare my car a total loss?
A. The insurer can determine whether the vehicle is a total loss. Each company has its own claim handling procedures and valuation methodology. If the cost to repair the vehicle exceeds a certain percentage of the vehicle’s value, the company will find it to be a total loss.
Q. How is the value of my car determined?
A. The value of your car is based on the actual cash value of the vehicle at the time of the loss.
Q. My company told me I could keep my totaled car but could not get comprehensive or collision coverage on it.
A. There are no laws that address this. If you have the vehicle repaired you may be able to purchase the coverage. But, if there is new damage the company will not total the vehicle again and you may be limited on the use of the coverage.
Q. Can the insurance company require me to turn my vehicle over to them?
A. Yes, if the company’s claim procedures require it take possession of the total loss vehicle.