Agent changed policy without our knowledge or written consent

[advice please]

What is the name of your state (only U.S. law)? CO
What is the name of your state (only U.S. law)? CO
Had insurance with same agent over 20+ years. Was going out of state for job. Asked agent if we wanted to rent house in the future-not at that time- what we would do. We left our newly remodeled house (2 floors and a basement) empty and put stuff in storage, which agent knew. Months later had pipe burst on 2nd floor and whole house was wreaked. (We had installed a brand new furnace and water heater the month we left and also left the new automatic temperature control set to cover all seasons.) When we were notified of pipes bursting, insurance agent told us that he had everything covered and that he would have our house fixed and ready for us to move back in when we got back and would also put us up in a hotel until it was finished. The day we got back, he told us that he was not paying for a hotel for us, that the cleanup alone came to over 10K with 60K+ in damages total and that he was only going to give us 10K as our "policy had been changed from a homeowners policy to a renters policy." We found a letter in the mail that was gathered for us while we were gone from him telling us about the policy change. He mailed the letter knowing that we were gone and he also knew that our friend checking the mail would not open his letter as the insurance payment was coming directly out of our bank account.) We have never had a homeowners claim in all the years we have been with him. We had to live with friends for 4 months as our home was not habitable. We also never signed any paper asking him to change the policy. Furthermore, he sent us a policy with false information on it, such as that we asked for insurance for guns (which we do not have and have never had), etc. Also, the home address he put on the "new" renters policy was the site where we had our furniture stored. We also do not have jobs right now,but hope to get them soon. Thank you for any and all help you can give us. It is greatly appreciated.

[JETX]

Since you didn't ask any QUESTIONS... the only answer you can get is....

The agent was correct.

Insurance companies set their premiums based on whether a house is being lived in (someone there to notice problems, give 'live-in' appearance for security, etc.). The risk is lower.

When a house is vacant, the hazard of something happening and causing far more damage then when lived in (as in your case), the risk is higher.

Depending on the ACTUAL timing, the agent sent you a letter detailing that fact. He sent it to your 'last known address'. You should have had a COA (change of address) with the post office to get your mail sent to you.

Also, I am willing to bet that the agents recollection of the specifics of your leaving a vacant property are different than yours.

With all that, your only recourse is to take ALL of the documents to a local attorney who can draft a letter to the insurance agent and company on your behalf. Sometimes that works.... usually it doesn't.
You can also consider filing a complaint with your state insurance commission.

[moburkes]

The only clarification that I'd like to make is that you said he changed it to a renters policy. You must mean that he changed it to a landlord policy. Also, no "regular" insurance policy, including a homeowner's policy will cover claims when a house is vacant. Did you notify your agent that the house would be empty for 2 months? That is the key. Depending upon what happens with the lawyers, even if they reverted the policy back to a homeowners, your house was vacant. Apparently, based on the fact that you completely renovated it AND you put furniture in storage, it was vacant more than 30 days - which is the time limit for most HO policies.

[codysmom]

Originally Posted by moburkes

The only clarification that I'd like to make is that you said he changed it to a renters policy. You must mean that he changed it to a landlord policy. Also, no "regular" insurance policy, including a homeowner's policy will cover claims when a house is vacant. Did you notify your agent that the house would be empty for 2 months? That is the key. Depending upon what happens with the lawyers, even if they reverted the policy back to a homeowners, your house was vacant. Apparently, based on the fact that you completely renovated it AND you put furniture in storage, it was vacant more than 30 days - which is the time limit for most HO policies.

Actually it would be a vacant dwelling policy rather than a renters or landlord policy. Coverage on a vacant dwelling policy is much more limited. If you did not give your agent a forwarding address or do a COA at the post office his duty was fulfilled by mailing the letter to your "last known address" as indicated above. I doubt that he changed the policy in any way as if he had written a new policy for the vacant dwelling he would have had to obtain a premium deposit and a signed application. It sounds like the vacancy clause in your homeowners policy kicked in and limited the coverage.

What exactly does the letter say? Does it indicate that he procured a vacant dwelling policy for you or does it state that the vacancy clause on your current HO policy has kicked in and your coverae is now limited? If the latter, you will be hard pressed to change anyone's mind (including the courts) because you left the home vacant not your agent and if you read the policy (as everyone should) you will note the vacancy clause that is in all policies (Homeowners, Dwelling fire, commercial property, etc.).

[moburkes]

Originally Posted by codysmom

Actually it would be a vacant dwelling policy rather than a renters or landlord policy. Coverage on a vacant dwelling policy is much more limited. If you did not give your agent a forwarding address or do a COA at the post office his duty was fulfilled by mailing the letter to your "last known address" as indicated above. I doubt that he changed the policy in any way as if he had written a new policy for the vacant dwelling he would have had to obtain a premium deposit and a signed application. It sounds like the vacancy clause in your homeowners policy kicked in and limited the coverage.

What exactly does the letter say? Does it indicate that he procured a vacant dwelling policy for you or does it state that the vacancy clause on your current HO policy has kicked in and your coverae is now limited? If the latter, you will be hard pressed to change anyone's mind (including the courts) because you left the home vacant not your agent and if you read the policy (as everyone should) you will note the vacancy clause that is in all policies (Homeowners, Dwelling fire, commercial property, etc.).

You're right. I was referring to his use of renters insurance for when he wanted to rent the house. Since the house was going to be vacant (and likely was vacant at time of renovations) it would have been a vacant policy he needed.