Asked anonymously

My Dad had water backup included on his policy for 35 years, then it was discontinued and made an additional policy. My Dad was unaware of this change.

They had it typed on the renewal but never spoke about it to my Dad or asked him if he wanted it. Is this error and omission?

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  Answers  |  4

September 14, 2015

The best person to ask would be an attorney who is knowledgeable in insurance matters. Ultimately, documentation beats representation but an attorney can tell you what your father's options would be. Good luck.

$commenter.renderDisplayableName() | 09.22.17 @ 04:44

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September 15, 2015

Companies sometime make changes to their policies, but should have sent him a notice in the mail. If he has an agent that is his job if not then companies to inform the client of any changes to the policy because you signed a contract with the coverage originally on there.

$commenter.renderDisplayableName() | 09.22.17 @ 04:44

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September 15, 2015

I don't know if this is true in this instance. However, too many times people shop on price alone. They don't care too much about coverage until there is a claim. They rarely interview their agents or they want to act as their own agent thinking it will save money.. Price is the top and sometimes the only consideration.

It would be rare for an experienced agent to miss this coverage or to take the risk or want to deal with the hassle if there were a claim without this coverage.

If our agency represented a company that changed this important policy coverage we would have contacted our clients.. We don't sell policies without water backup coverage unless the insured signs off - which is rare - they generally don't go without the coverage because we show the value or get at least some sort of coverage amount.

When people find out how inexpensive it is for the coverage - they'd be very mad and/or sad. We'd rather lose the business than deal with those types of claims issues. It could be too much of a headache for everyone.

I would have him call his agent and ask her/him about it. Insurers would have sent sort of notice of the policy change at the very least.

$commenter.renderDisplayableName() | 09.22.17 @ 04:44

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September 17, 2015

It is true that policies can change, and the company has the responsibility notify the client by mail. But that is typically as far as the company will go. The agent then has the responsibility to verify the client is properly notified. If the agent fails to do so, it is not necessarily the fault of the agent because the company sent a notice out. The agent E&O coverage would not cover this.

It is true that you should consult an attorney, but most attorneys are not fully versed in complicated matters of insurance unless it is their specialty. Attorneys all have different fields they specialize in so be careful not only of insurance agents but of attorneys as well.

$commenter.renderDisplayableName() | 09.22.17 @ 04:44

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