“The Colorado Court of Appeals in Kyle W. Larson Enterprises, Inc., Roofing Experts d/b/a The Roofing Experts v. Allstate Insurance Company, 2012 COA 160 (Sept. 27, 2012), has now held that the so-called Colorado “bad faith statute” applies not only to insureds, but also to those who assert claims on behalf of insureds under an insurance policy.” …contractors!
But in my opinion, lack of communication from the insurance company, is a part of their game. I get ghosted by adjusters ALL THE TIME. I have to be persistent. get the homeowner involved. ask for a claim supervisor…if you are serious about a bad faith claim, i would ask a lawyer who specializes in this. It sounds like a lot of work, time and money to bring forth a bad faith claim on an insurance company, when there are easier, free ways to get the insurance companies to respond.
The problem with that theory is the fact that the insurance company and the homeowner have a contract between them. The contractor has no such agreement with the insurance company and opens themselves up to lawsuits if they are acting as a representative without a proper license.
That’s specific to Colorado. I know Kyle quite well, he is a pioneer in our industry. If the adjuster doesn’t want to discuss the claim with us, we simply arrange a conference call with the homeowner. Most of the time, the insurance adjuster doesn’t want to be exposed for their bad faith scope writing practices and would prefer to work it out without involving the homeowner.
The flip side is, the IC had no business attempting to interfere with the contract between the contractor and the homeowner. To do so is tortuous contractual interference. I predict you’re going to see an increasing number of lawsuits against adjusters as a result of their attempts to interfere.
Have homeowner send RRR, that way you have proof they are delaying so if the claim continues on just send another one. $6.70 cents