Agent said covered, company said no

[SHGFAN]

What is the name of your state? IL

We receintly found water in our finished basement. My first call was to my agent and was told that it was covered and to either call one of the local companies to take care of it or do it myself and keep the receipts.

After receiving a $3000 bill for the work done, my insurance company called and said I was not covered. Had I been informed that I was not covered, I would have done it myself and much less cost but more hard work.

Should the Independent Insurance Agency my agent works for cover the bill (minus the deductable) since it was on incorrect information I received from her? Would this be on their errors and ommisions policy? To complicate matters, my agent has since left the agency she works for and I am getting nowhere.

THanks for your help in advance.What is the name of your state?

 

[panzertanker]

What is the name of your state? IL

We receintly found water in our finished basement. My first call was to my agent and was told that it was covered and to either call one of the local companies to take care of it or do it myself and keep the receipts.

After receiving a $3000 bill for the work done, my insurance company called and said I was not covered. Had I been informed that I was not covered, I would have done it myself and much less cost but more hard work.

Should the Independent Insurance Agency my agent works for cover the bill (minus the deductable) since it was on incorrect information I received from her? Would this be on their errors and ommisions policy? To complicate matters, my agent has since left the agency she works for and I am getting nowhere.

THanks for your help in advance.What is the name of your state?

Unfortunately, a very expensive lesson to inform your insurance underwriter of the claim and allow them to send a claims adjuster to verify and then authorize the claim...

 

[SHGFAN]

Do I have options?

I appreciate your reply, however, what options do I have? I did things by the book, contacted insurance rep, followed her orders and then BAM. not covered.

 

[moburkes]

You didn't do things by the book, though. Your agent is a SALES person, not a claims adjuster. When you have a CLAIMS question, you call the CLAIM phone number. You can also look at the policy packet. Unless your basement was damaged by a covered incident (not flood), then it will not be covered.

 

[tammy8]

Where did the water come from? That is an important factor in coverage.

 

[SHGFAN]

According to my insurance it said to contact my agent or independent agency FIRST.

I am not sure where it came in at, I believe it was a result of the sump pump failing. Apparently I am covered for everything but that which is where my problem sits, which doesn't make since because I did have coverage for Mold and Mildew but not water damage.

It still goes back to the question, if the agent says you are covered and you act on that, do you have any recourse when the actual company comes back and says no? Should that agent fall back to their Errors and Ommisions insurance?

 

[moburkes]

According to my insurance it said to contact my agent or independent agency FIRST.

I am not sure where it came in at, I believe it was a result of the sump pump failing. Apparently I am covered for everything but that which is where my problem sits, which doesn't make since because I did have coverage for Mold and Mildew but not water damage.

It still goes back to the question, if the agent says you are covered and you act on that, do you have any recourse when the actual company comes back and says no? Should that agent fall back to their Errors and Ommisions insurance?

What said to contact your agent?

In order for the water damage (indirect loss) to be covered, there has to be a covered loss. If you have a sump pump, did you purchase sewer back up coverage? What do you mean you are covered for everything?

 

[tammy8]

Unless you have sewer back up, this would be considered rising water**************....which is flood.

And just for kicks (not that it is gonna make any difference in whether this is a covered lose or not) how can you prove that your agent said you were covered?