is it ethical or a conflict of interest is the same company to do the claim work on the property and they are the insured’s tenants.>

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Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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UPDATED: Feb 7, 2013

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Insurance Question from Mount Holly, NC

Asked on 02/07/2013

is it ethical or a conflict of interest is the same company to do the claim work on the property and they are the insured’s tenants.> renter - is also the contractor performing the work.

Answer given on October 14, 2013

If there is a covered homeowner loss and the insurance company accepts the estimate for the work to be done, there is no problem with the insured or their tenant to do the work.The insurance company will expect the work done to be done as expected and proper permits and materials used. If the tenant of the property owner can do this, then there should be no problem.However, if the work done is sub-standard, then the insurance company may refuse any future claims due to the work done. The policy specifically excludes faulty construction, so ensuing damage will not be covered.Make sure the tenant is licensed or approved to do the work. The local jurisdiction should review the work as it goes forward, if permits have been pulled, but that would not necessarily avoid future loss refusal by the insurance company.


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