Is my homeowner's insurance agent guilty of fraud?

Question

A few years I was forced to get a new homeowner's insurance. When I spoke with the agent, he extolled the virtues of the policy and I bought it, assuming I had full coverage. However, when I tried to place a claim for storm damage, he promptly indicated that my policy was "liability only." Apparently I am not covered for damages caused by natural events like rain, wind and lightning. It will only cover like if someone comes on my property and stubbed their toe and sued me for $100 million. Is there really this type of insurance or is the company just trying to side-step their responsibility of paying? I looked at the policy, but I just don't have the savvy of figuring it out. Of course, if I want to add this coverage, my premiums will triple. Was this insurance agent deceptive in his salesmanship?

Answer 1

the type of loss you describe sounds  like an umbrella policy. if u have a mortgage, your lender would never let you buy apolicy that does not fully protect their investment against these natural disasters. read the policy. and dump the agent, and get one you trust

Answer 2

I'm not sure if he was "deceptive" or you were just ignorant.  Why would you not verify that you have full property coverage when buying a new policy?

Answer 3

when ever you go to an agent for information, ask lots of questions. She sold you what she wanted you to have, not explaining what the policy would cover

Answer 4

thats the craziest thing i ever heard!  this is either a premises liability policy or an umbrella policy you are talking about, NOT a homeowners policy.  In order to have an umbrella policy you have to have an underlying homeowners policy, so where is it? I'm not sure why you were "forced" to get a new policy, but it isn't a homeowners policy.  You say the agent went over the policy with you before you bought it, so you should have known what you were getting.  Call the agent and find out what type of policy it is and find out where your actual homeowners insurance is through.

Answer 5

If you think that you have property coverage, then call the company directly. The adjuster will interpret the policy for you and let you know whether or not the claim will be paid.

As far as fraud, if you don't have anything in writing, a quote or application, that states you were purchasing insurance for your property, then you don't really have a case against the agent. Its just a he said/she said.

Answer 6

None of us was there when the insurance agent told you what the policy covered. If you don't have any recording of what was said, I doubt you will have any action against the agent. The insurance company is liable for whatever the insurance contract says they are liable for. If you can prove the agent misled you or misinformed you, you can sue him and his errors and omissions policy would pay.

Answer 7

No.  Court cases have been brought under similar circumstances and the simple fact is YOU have a copy of your policy, you get a new copy every time it renews and YOU needed to read your policy.

And sure there is that type of coverage:  It's called liability.

However if you have a mortgage your bank should have known you did not have property coverage.

And you certainly don't need to be "savvy" to read your basic coverage, on policies it is in plain and simple terms on the front page, usually in a box.  Then there are the numerous pages behind it that one needs to be "savvy" to figure out, but in plain terms YOU should know what coverage you have or don't have.

By the way, if you need 100 million dollars worth of liability coverage, I would hate to see your Umbrella policy!!!!

Answer 8

When clients GET/BUY an insurance policy - they hear what they want to hear

eg: lower price, mine's the best...blah...blah...blah

What alot of times they DON'T hear the "exclusions" - meaning what it doesn't cover - and that is not the fault of the agent - usually it's in writing! incase you did not listen to that part of the conversation

Agents are paid to properly explain the coverages you are getting and GIVE YOU a copy of exclusions - if you did not read it or understand it -

you should have asked your agent to explain anything you did not read or understand.

That, as the client, is your responsibility