Quote:
Originally Posted by MoneyGuy
Can you collect on insurance and also sue for any uninsured loss?
Two examples...
Car is totalled by a driver and your insurance company only covers, say, 80% of the vehicle value and you’re on the hook for the rest.
There is big damage to a house due to a contractor’s error but insurance only covers part of the damage leaving the owner with an uninsured cost of tens of thousands of dollars.
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Whoever is responsible for the accident is on the hook totally. It should be their insurance that covers things, not yours. If your damages exceed their personal insurance, you can go after them personally.
There are instances where you can get insurance to cover yourself in the event that other party does not have enough insurance.
In scenario 1, the other driver's insurance would be liable, not yours. Unless it's a situation where you've lent your car to someone, who is then driving under your insurance policy. That situation's a bit trickier, as although the other person is at fault, you gave them permission to drive and are liable for doing so.
In scenario 2, the contractor would be at fault, and yes you can sue them. Their insurance would be responsible, unless you have specific insurance to cover your own uninsured property.
There are many situations where contractors are run through a corporation, and the corporation then folds, leaving no one to sue. Always make sure any contractors (and other labourers) you let into your home have insurance.
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