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Old 08-08-2015, 01:21 PM
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Default 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?
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Old 08-08-2015, 04:34 PM
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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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Old 08-08-2015, 08:18 PM
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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.
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Old 08-08-2015, 08:56 PM
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Yes, I know for a fact that insurance regulations much like childcare regulations run state to state.
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Old 08-09-2015, 02:10 PM
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Originally Posted by MarinaVanessa View Post
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.
I am operating completely legal in my state. I'm able to care for up to 3 children at a time and I follow that. But not being licensed is what's getting me and they're pushing HARD for insurance so I can't put them off until I get my licensing complete or they will both have an aneurism lol

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
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Old 08-10-2015, 04:05 AM
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Quote:
Originally Posted by AuntTami View Post
I am operating completely legal in my state. I'm able to care for up to 3 children at a time and I follow that. But not being licensed is what's getting me and they're pushing HARD for insurance so I can't put them off until I get my licensing complete or they will both have an aneurism lol

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
I had renters insurance from state farm when I lived in AR - switched to Homeowners when I bought my single wide in TN; still have liability coverage on the license exempt childcare babies (limit 4 here) it really didn't change my fees when it switched. I originally started in WV 15 years ago & I had State Farm back then too - they also covered my in Galena, Il in 2009
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Old 08-10-2015, 01:34 PM
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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.

Last edited by Michael; 08-10-2015 at 04:41 PM.
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Old 09-17-2015, 08:37 PM
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Originally Posted by Daycare Insurance View Post
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.
True, but since you refuse to insure legally operating small homes that run license exempt, we have no choice; State Farm covers me for minimum $500,000 liability... and if I had too, I would up it. I guess the smaller homes that run like licensed daycares aren't worth it for you (regardless that I am a long running childcare & have been licensed in other states), but at least someone is watching my back...

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
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Old 09-18-2015, 04:58 PM
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Originally Posted by LysesKids View Post
True, but since you refuse to insure legally operating small homes that run license exempt, we have no choice; State Farm covers me for minimum $500,000 liability... and if I had too, I would up it. I guess the smaller homes that run like licensed daycares aren't worth it for you (regardless that I am a long running childcare & have been licensed in other states), but at least someone is watching my back...

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

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.
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Old 09-18-2015, 05:29 PM
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Originally Posted by Daycare Insurance View Post
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.
So the fact I follow the exactly the same regs as a licensed home plus some because I take crises babies, but can't get the license due to what the state will license... they would license a rancher with mild mold, but they won't license a new single wide with same sq ft... how does that make it fair
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Old 09-18-2015, 06:32 PM
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Originally Posted by Daycare Insurance View Post
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.
Statements like that make me so mad. I have been licensed in another state, and was also a foster parent in that state. The health and well being of the kiddos in my care is very important to me. The issue being the house I rent (along with most houses in my town) does not have a fenced yard so I can't become licensed. My landlord will not do it even though we have rented this house for over ten years, and there is no way I am paying for an improvement to a property I don't own, and that is IF the landlord would allow it. To say I am a bad provider due to that is hogwash and offends me greatly. If I do get licensed, I will NOT pay premiums to a company that has that attitude.
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Old 09-19-2015, 09:23 AM
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Originally Posted by LysesKids View Post
So the fact I follow the exactly the same regs as a licensed home plus some because I take crises babies, but can't get the license due to what the state will license... they would license a rancher with mild mold, but they won't license a new single wide with same sq ft... how does that make it fair
In my opinion their reasoning is no different than ours (providers) is when we say we wont do X simply based on the liability. If there is a risk for us, we usually decline. I dont really see it as any different.

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Originally Posted by Thriftylady View Post
Statements like that make me so mad. I have been licensed in another state, and was also a foster parent in that state. The health and well being of the kiddos in my care is very important to me. The issue being the house I rent (along with most houses in my town) does not have a fenced yard so I can't become licensed. My landlord will not do it even though we have rented this house for over ten years, and there is no way I am paying for an improvement to a property I don't own, and that is IF the landlord would allow it. To say I am a bad provider due to that is hogwash and offends me greatly. If I do get licensed, I will NOT pay premiums to a company that has that attitude.
Um, okay.. I am not sure why DCI's post/statements caused such anger for you but I didn't read anywhere that he said said legally unlicensed providers are bad providers.

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.
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  #13  
Old 09-28-2015, 12:18 PM
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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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