Did you rent that house and move?

I sell a promise and security which I take very seriously. When I hear of an insurance company that is not performing I get angry. So when I heard about a friend of a friend with a problem I was happy to meet. Yesterday I met with him. He had had a fire in his house and the carrier did not pay. In fact they have action pending in Federal Court. 80% of the house is damaged. He was not insured by my agency nor one of my companies. He had a homeowners policy which is filled with language about the house being owner occupied. He had rented the house. Not only had he rented the house he had turned it into a duplex. That company does not write rental houses at all. If they would not have insured you knowing all the facts they can deny a claim. Consequently I had little encouraging news for the fellow. Even if the carrier would have written a rental house there are giant holes in the coverage contract creating situations where little or nothing is paid.

The second part of this story is the fellow chased the cheapest price all over so his policies are spread everywhere. If he had kept to the best deal offered by one agent that agent would have had a duty to advise and seek out information. Since he spread his business everywhere, he would most likely not be successful going against the agent.

Please, please call your agent if you have moved from your house and rented it. There is a lot of that going on because of the real estate market and credit market. It is really important to have it done right. Also, pick and stick with a good agent. They see bad luck visit people all the time and can offer great advice. After all, you make your own luck.