Wrong House Insurance policy sold!

[hblais2005]

What is the name of your state? Georgia

My sister owned her own house for many years. She asked my brother to put it in his name when she realised she was in a very abusive relationship and wanted to protect her assets. She paid the premiums for the last 3 years on this new policy. The insurance agent asked many questions to ensure she had the best possible coverage on her home and the right policy. Last Friday her house burned to the ground while attending a family funeral. The small town local office called her and reassured her she had a very good policy and that she was fully covered. On Monday she was advised that the head office said she WAS NOT covered at all!!!!!!!!!!!! I believe the wrong policy may have been sold to her even after answering all those questions. I am trying my best to gather as much information as possible to help her.....she is losing her mind.

The head office has already told her that they have lawyers already looking into the matter.

What are our options? Any information, advise you can share with me would so much appreciated. Thank you for your time.

Stressed

 

[Warped]

I'm not a lawyer!

I don't have any advice for you ma'am other than you really should remove your real name from your post. Best of luck to you and your sister.

 

[acmb05]

so she had a policy

for 3 years and paid on it religiously but never bothered to read it before she signed it? Basic policy covers fire damage so what is the problem? Why are they saying she is not covered?

 

[john123456]

"She asked my brother to put it in his name"

Put what in your brother's name? The title to the house? The insurance policy? All of the above?

 

[acmb05]

If the house

is in her brothers name that may be a reason she is not covered. The policy is in her name but the house she had insured is not. I would ask for the specific reason why they are saying she is not covered. It may be that her brother is the one who has to file the claim.

 

[hblais2005]

"She asked my brother to put it in his name"

Put what in your brother's name? The title to the house? The insurance policy? All of the above?

The house was put under the brother's name, however, even knowing the changes had been made, the agent put the policy in her name. Can he put a claim for this loss on her policy???? It is after all the same property that was insured. And can they be held accountable for this major and stressfull error?

 

[hblais2005]

for 3 years and paid on it religiously but never bothered to read it before she signed it? Basic policy covers fire damage so what is the problem? Why are they saying she is not covered?

The policy is in HER name, the property is in HIS**************..the agent who sold the policy was aware of the deed name change but issued the policy in HER name. So now they are saying (even after paying for 3 years) that she isn't covered**************..not 1 dime!!!!!!!

 

[john123456]

The policy is in HER name, the property is in HIS**************..the agent who sold the policy was aware of the deed name change but issued the policy in HER name. So now they are saying (even after paying for 3 years) that she isn't covered**************..not 1 dime!!!!!!!

I suspect it is because she has no insurable interest. Hopefully, stephenk will offer an opinion.

 

[mlk1978]

Unless your brother was listed as an additional insured then really there is no insurable interest. However, if you are certain you told the agent that the house was deeded in your brothers name and you were the "tenant" or person living in the residence and paying for the policy because it is your interest to, then the agent SHOULD have put both names on the policy. If you told him and he didn't then you have solid ground to collect your money. But not from your insurance company. Chances are he has errors and omissions insurance, that is where you will find your coverage. Take a look at your application, that will be your best bet. If you have no proof on paper you can try to take it to court but chances dont look good. That is my opinion though. I hope everything works out and Good luck. BTW, if he is any kind of agent then the bank would be listed on the policy, therefore the bank that holds the mortgage should get paid.

 

[ALawyer]

This is the type of case in which you MUST speak with a good insurance lawyer NOW. It may cost a few hundred dollars an hour and take a few hours of the lawyer's time, but often with a lawyer's letter or phone call the matter can be resolved to your sister's satisfaction, without litigation and without years of delay.