Unlicensed Insurance?
We "rent" our home from DH's parents and have a basic renters policy. They obviously hold a home owners policy on the house.
They've recently begun bugging me to get some type of insurance policy, but from what I'm understanding, I can't get a regular policy because I'm not a licensed provider, which then they recommend a rider or umbrella on the homeowner insurance correct? Is there a way for me to buy some type of insurance to appease them and cover my butt? I don't wanna pay for a policy of its not going to be of any worth, but I'm not sure how to go about getting one for a property I don't own and a business that isn't a licensed business.....I'm sure my renters policy doesn't cover me, so then what? |
We were talking about this in a facebook group. Someone said they have renters insurance and a daycare rider from State farm. I have yet to check into it though. I am in the same boat, rent the house and am legally unlicensed.
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I have a rider on my condo from State Farm but I'm a homeowner. I'm pretty sure a renter with renter's insurance from State Farm could possibly do the same but from what I understood (although it could be different from state to state) when it was explained to me was that I could not get a rider on my insurance in my state unless I was licensed. If I was running as a licence-exempt provider (and totally legal) then I wouldn't qualify for a rider from them.
That being said however it might be worth it to ask anyway because my state has pretty strict regs on license-exempt care and only allows you operate as license-exempt if you care for family members or if you only watch one family's kids. In other states you can care for more kids than you can here and still operate legally so maybe in those states they can offer riders even if you are legally unlicensed. My mom works at a State Farm so I get to ask her a lot of hypothetical questions but she did mention that sometimes it varies from state to state because of different laws and regulations. |
Yes, I know for a fact that insurance regulations much like childcare regulations run state to state.
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Originally Posted by MarinaVanessa: I'll have to call State Farm tomorrow. We don't have renters through them but if it's possible, I'm willing to switch |
Originally Posted by AuntTami: |
While you may be operating 100% LEGALLY in your state as an unlicensed provider, you may not be able to purchase insurance coverage that covers you as comprehensively as you would like.
Daycare can be a risky class of business to insure, when youre unlicensed, to insurance companies you are an even higher risk. Riders on your homeowners are widely known as not being a good method of protecting your self but its certainly better than nothing. If you are unlicensed and you are having trouble finding insurance that adequately covers you, you might look into the possibility of purchasing a bond or even the possibility of becoming licensed. I know the requirements are different in every state, and maybe your state's requirements are to cumbersome for you, but being licensed may offer you more benefits. |
Originally Posted by Daycare Insurance: BTW, because I am infants only, I would still only be allowed 4 children here in TN even when licensed... My only problem is my almost new mobile home is a single wide instead of a double wide, otherwise I would be licensed; I have jumped regulation hoops to take Foster babies thru the state (inc background, first aid etc) & qualify for the food program. Maybe you should reconsider who you cover |
Originally Posted by LysesKids: The size of the child care is actually not the issue for us. We insure small child cares as well as larger ones. We would love nothing more that to find ways to cover every legal operation, and we work very hard at trying to find solutions for groups of providers who have a hard time finding the right coverage, but it isn't always easy or even possible. Much to my personal dismay, the fact remains that to some insurance carriers, if you are not licensed or regulated you are considered a higher risk and therefore you may not be an insurable one. Of course we know that the accuracy of that statement may not be true for every case. To make a loose comparison, there are many auto insurance carriers that would not provide coverage if someone drives a Ferrari or Lamborghini, but that does not mean they are not legally driving it, even with a sterling driving record, most companies would still rather not accept the risk. I hope this helps shed a little bit of light. Just a side note, nothing helps us more than large groups of providers voicing their opinion and concerns. If you are a part of a group of providers that is having a hard time finding the right coverage please feel free to write or email us. The more voices we have documented the better chance we have at finding a possible solution. |
Originally Posted by Daycare Insurance: |
Originally Posted by Daycare Insurance: |
Originally Posted by LysesKids: Originally Posted by Thriftylady: He said its a risk to them as insurance providers. I think thats a true statement not a bad attitude or personal dig at anyone. He also encouraged providers to use their voice to help change it. ;) |
Thank you for for kind words.
Believe me, I completely understand the frustration. We have dedicated our existence to the benefit of child care providers. We designed an insurance product specifically to be in their favor, we educate, and advocate in the industry to the benefit of the child care provider on a regular basis, and we assist in any areas that we can. We do not have any say on who becomes licensed or how providers become licensed so for those who have problems becoming licensed by your state, I certainly sympathize with you, I have no doubts that a majority of all legally operating providers are great providers, and maybe in some cases even better providers than some of their licensed counterparts. I would reiterate that if you are member of a group of providers that is having an issue, that I would love to hear your voice. If I cant help, I may be able to refer you to an organization that assists those in similar situations. |
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