What can I do????

[mysteryunicorn]

What is the name of your state (only U.S. law)? FL. I have an investment property in Florida that I purchased in March 08. I closed and all was good. I then in April got a notice from my lender, Wells Fargo, that insurance did not include wind coverage. I immediately got in touch with them and the insurance agent and it was explained to the lender where to look for the coverage and exactly where it was indicated on the policy..... alls well...... not..... one month later i got the same letter from the lender. again i immediately got a hold of the lender and they assured me all was good it was a mistake that the letter was generated to me again, alls well...... again .... not... I got a letter in June from the insurance company saying that my policy was cancelled for the reason of never recieving an application. I immediately called the insurance company they explained to me that the application they have does not have the agents signature on it and if I get them to fax over the app with their signature on it I will be reinstated, keep in mind they have one year payment on this insurance. I forwarded that information to the agent along with whom I was talking to at the insurance company and his direct extention. I then took the application I had faxed it to the agent and mailed them what I was given. (yes I kept a copy of everything) I was told by the agent the person that took my application no longer worked for the company and that they had notices of the cancellation and they did not know what to do with them because they didn't even have a file on me. They did not know who I was. I made sure the agent got the fax of the application and they did and I was assured that it was being signed and faxed as we spoke by the owner of the agency.... ah finally insurance in place..... NOT..... Here it is July and I am in Florida there is a hurricane out there and I have no insurance still. Evidentally the fax never went from the agent to the insurer. so they cancelled me..... I called the insurer and they said there were notes that the application was coming over and it never did. I called the agent and there is only a note in the file, (at least there is a file on me) that the application was faxed on the date in question (6/12/08) but no confirmation. I have asked for them to try to get a fax generated confirmation and send it to the insurer who assured me that the policy would be re instated upon reciept of the 6/12/08 fax confirmation and payment. Hence the insurer sent my one years premium back to the escrow account. The agent stated to me though that if in deed he is unable to get the confirmation he needs that he will have to re do the application. and start over again. WHAT IS THAT? I want to know if I do have to reapply for the insurance and they come back with a higher annual can I request for the insurance agent to pay the difference? They are the ones who have ill managed this entire account. All I want is Insurance!! NOW before Bertha comes to close to the state and there will be a hold on all new policies.

 

[KIMMACK]

I work in a insurance agency in NY. I have the same issues with "wind deductables". I'm sure all new Ho and DF policies start with them. 5% usually. and if it is a old policy, I find most companies have begun adding them to policies on renewals.

According to your post, you have an agent, who's responcible to submit the application and make sure the policy is written and bound correctly, and if you have any trubble with the bank, your agent should handle that accordingly too.

If something happens to your home, and you are not insured because of the neglect of your agent, it falls on the agency, and they need to fix it / cover it.. The agency has insurance for there mistakes. (you said you have doc's showing you were to be insured on (blank date) to (blank date) for ($$) and you accepted that offer by paying the money and signing the app. you paid for the policy,you signed the app you should have coverage, with no lapse no exceptions, and you should get on your agency right away. Tell them because of there actions you are not insured and its there fault. You can file a complaint agenst them with the state of fla if they dont do everything and anything to fix it NOW. If something happens during this time the agent's insurance policy will have to pay for the damage that may happen. It doesnt matter the person who took your app doesnt work there anymore, they were employ'd (probably not even licensed) and therefor the responsibility falls on the licensed agent who runs the agency,

If you have to start again, get another agent. you should not have to go thru this.


PS how could your agent ask you to fax them a application with the agents signature, if you are not the agent.?

Good Luck.

 

[mysteryunicorn]

Thank you, as it turns out I am going to have to start all over again. This is now I have no insurance and have not for the past almost 5 months. I am in Florida and there is a hurricane out there. The Insurer was actually trying to work with me and when they informed me that there were several notices sent to the agent the app was initially submitted Feb 26, 2008 and they were to submit the fully executed app within 12 days..... I closed March 11, 2008. Already past the 12 days.... I did get a list of local agents reccomended by the insurer I will be doing that first thing this morning. I am just affraid that I will not get the same rate..... I am affraid I will have to come up with even more money here 5 months after the fact. I don't know if right or not but I will be asking the mickey mouse show..... i mean the insurance agent that they need to pay the difference. Is that reasonable? I am totally livid!!!!!!

 

[alligatorob]

Welcome to Florida

Where hurricanes are too numerous and insurance is always a problem.

I pay over $10k for insurance on my home. I purchased a rental house last year and have just gotten a cancelation notice so will have to be on my third insurance company in less than a year soon, if I can find one. And I own a small office building that has been without wind coverage for a year, I just can't get it.

Come on down the the sunshine state, hell everybody else does. see: http://youtube.com/watch?v=zDgHSVYiq4M

 

[KIMMACK]

I know it would be right for the agent who screwed up your insurance to pay the differnce, but I am sure they wont. And I can understand the insurance crisis in Fla, as a insurance agent on long Island, our corporate american Insurance companie sare being greedy and rediculous with premiums, deductables and coverages. There dropping people who have had coverage for 30 years because the rest of corporate america screwed our enviroment. and now there are extorting us. grrrrr.


Sorry, Yea good luck replacing that coverage. at least that broker didnt get paid on that account.

 

[mysteryunicorn]

The Latest Update

Just to keep you informed. I was just informed by the mortgage company, whom i am keeping informed for what I believe is in my best interest......, that since the insurer actually returned my entire annual amount paid at closing to my escrow account, that the mortgage company will, when I show proof of insurance, bill me for the laps in the insruance from the day of closing (3/11/08) until the day all the new information is submitted to them. At the rate of the forced placed insurance (3x's what my actual annual payment is....) and so for argument sake the mortgage company told me it would be approximately $1,250.00 for five months of coverage. I then called the agent and told the owner of the agency that I will NOT eat one penny. I have proof of a binder, proof payment was made, and proof that it was their dropping of the ball that leaves me with no insurance. This translates to me that they led me to believe that there was insurance. The owner of the agency said I am right and we will cross that bridge when we get to it. I gave him one hour (which is up in approx. 10 minutes) to get back to me with a solution.

 

[moburkes]

You've got a few problems. Most binders last no longer than 30 days. Some only last 10 days. So, your binder expired already. Second, your money has been refunded - legally. Third, you never received an actual policy.

You can contact the Florida Department of Insurance but I really don't see a recourse for you.

 

[mysteryunicorn]

the mortgage company does have an actual policy!!! imagine that.... there was questions on the wind coverage at the beginning and the mortgage company and the insurer spoke on more than one occassion regarding specifics on my policy...... i do not think that the fact that the binder expired is so much my issue but the fact that I did what I was required and the agent mis led me into thinking they did their job by submitting a fully executed application. And why would there be several conversations with the lender on my insurance if in fact it never was**************. money (annual premium although refunded in full) was not returned until the end of June. My closing was March 11th I have a letter from the insurer dated June that states my policy will be cancelled on June 10th due to no application ever submitted. In writing from the Insurer. So.... was I actually covered until June 10th? Technically? but then again they did refund the entire annual premium. I am getting confused now!

 

[KimInNY]

actually, the mortgage co has to protect there intrest, so they got the same cancelations as you did and replaced your coverage for a very high premium. (forced coverage) which I cant imagine would cover more then the mortgage on the property, as they dont care about things like your rental income, and liability. so you should still try to get into a voluntary market ASAP.

Second at the time you got the notice of cancelation for the reasons they stated,(which in my oppinion is the agents fault) you were covered, but after they werent satisfied they canceled your policy flat, refunding all the money. being the same as having never gotten coverage in the first place. so thats how that went.

Fla is a hard state to get coverage so good luck.

 

[KimInNY]

Just to keep you informed. I was just informed by the mortgage company, whom i am keeping informed for what I believe is in my best interest......, that since the insurer actually returned my entire annual amount paid at closing to my escrow account, that the mortgage company will, when I show proof of insurance, bill me for the laps in the insruance from the day of closing (3/11/08) until the day all the new information is submitted to them. At the rate of the forced placed insurance (3x's what my actual annual payment is....) and so for argument sake the mortgage company told me it would be approximately $1,250.00 for five months of coverage. I then called the agent and told the owner of the agency that I will NOT eat one penny. I have proof of a binder, proof payment was made, and proof that it was their dropping of the ball that leaves me with no insurance. This translates to me that they led me to believe that there was insurance. The owner of the agency said I am right and we will cross that bridge when we get to it. I gave him one hour (which is up in approx. 10 minutes) to get back to me with a solution.

excellent, let me know how it goes, I cant think of one thing he can do except pay the diffrence to you personally.

 

[KimInNY]

You've got a few problems. Most binders last no longer than 30 days. Some only last 10 days. So, your binder expired already. Second, your money has been refunded - legally. Third, you never received an actual policy.

You can contact the Florida Department of Insurance but I really don't see a recourse for you.

the insured did her part, which was pay the policy, and sign the app. The agent did "drop the ball" and i agree that unless she gets the agent to get a back dated policy, or has it reinstated, she should contact fla's dpt of ins, and there's not much more to do. unless of corse the agent wants to do the right thing, but what agent does. lol

 

[moburkes]

the mortgage company does have an actual policy!!! imagine that.... there was questions on the wind coverage at the beginning and the mortgage company and the insurer spoke on more than one occassion regarding specifics on my policy...... i do not think that the fact that the binder expired is so much my issue but the fact that I did what I was required and the agent mis led me into thinking they did their job by submitting a fully executed application. And why would there be several conversations with the lender on my insurance if in fact it never was**************. money (annual premium although refunded in full) was not returned until the end of June. My closing was March 11th I have a letter from the insurer dated June that states my policy will be cancelled on June 10th due to no application ever submitted. In writing from the Insurer. So.... was I actually covered until June 10th? Technically? but then again they did refund the entire annual premium. I am getting confused now!

In some states, apparently yours is one of them, they are allowed to flat cancel your policy. That means that they cancel all the way back to the beginning as if it never existed. That allows them to avoid paying a claim on the risk.

 

[moburkes]

the insured did her part, which was pay the policy, and sign the app. The agent did "drop the ball" and i agree that unless she gets the agent to get a back dated policy, or has it reinstated, she should contact fla's dpt of ins, and there's not much more to do. unless of corse the agent wants to do the right thing, but what agent does. lol

I'm an agent that always does the right thing. I don't know why you think I wouldn't. I didn't get to where I am by being stupid.

In any case, OP, your policy isn't going to be backdated to February. That isn't going to happen.

 

[mysteryunicorn]

Well, here we are again and this is it..... I finally lost it..... with the promise of calls back and failure to follow through I just went balistic. Calmly but nevertheless got my point across to this agent. With the argument he was trying to put to the insurance company they refused again to "reinstate" the policy so he was going higher up than management..... I told him I am not getting a warm and fuzzy feeling here and I don't care what your argument is with the insurer all I know is at the end of yet another day my home is not insured! This is where I lost it, He, the owner of the agency, relayed to me the fact that rebinding the policy was just a push of a button and he is presenting this fight to the insurer so that HE , or in his words, we, will not be charged the laps of insurance amount. I told him if I were in his shoes I would be kissing my butt!!! if i say I will call you in an hour I would even if there was nothing new. I want this situation rendered and I want it rendered NOW!!! I was within an hour emailed a new application (coverage increased $70.00) The agency owner said he would eat the increase. I told him I want that in writing. Haven't gotten that as yet. Now the waiting game is on.... I think the agent is going to try and make it look to the mortgage company that the policy is a reinstatement. I am not sure but I think that is what he was saying to me..... all I know is the binder I signed last night was dated with yesterdays date 7/9/08, which you can believe I will be keeping a copy of. I will be calling the insurer as well as the mortgage company today to see if any of this paper work went to them. Once I am sure my policy is actual I will then make my complaints to the Florida Department Of Insurance as well as the BBB. Please keep your fingers crossed for me and if there are any further developements you know I will be posting Thank you all for your support. This has been a very pleasent experience for this being an unpleasent situation and I have learned alot.

 

[moburkes]

Check the laws in your state about the agent paying the premium difference. It might be illegal for him to do so.