Over 1.5M Dwelling Case Possible E&O Claim?

[iiinycboi]

Hello everyone,

so i got a case where i am insuring over 1.7MM house. he asked me to remove everything but building and liability. nothing attached.

he used to have HO3 policy but he basically asked me to give him a DP1 for his mortgage satisfactions.

I've already explained the difference in coverage, but he insist on DP1.

Do you guys foresee an E&O claim here? How can i protect my tail.

 

[CaptiveGuy]

First, have him sign the application outlining he is applying for that coverage. Note your file/management system that you advised him otherwise or have him sign a waiver you typed up and you're good.

 

[Josh]

A signed waiver can go a long way. "Your honor, I told him it was a bad idea and he signed this saying he took this against my recommendation."

 

[Guest]

on YOUR letterhead, you write up a waiver that he has to sign, and include the differences in the policies AND the yearly rates.

Then have him sign it, then I would also send a copy to the carrier, so its on their file and leave a couple copies in various places so you dont lose it! LOL

Have him sign it, get an ink thumbprint, and a vial of blood, because something definately seems hokey about it.

Whats the differences in rate, a couple hundred a year and with a virtual 2 million dollar house, he will fret over a couple hundred,

cover your ASS to the Hilt.........I foresee an arson investigation soon.......

On second thought, sometimes you have to say no to business, I mean, sure, great commission on this, but I seriously see that house being torched and completely ruining your loss ratio. Maybe write it thru a broker, where you dont have a direct code or bonuses.....

 

[iiinycboi]

on YOUR letterhead, you write up a waiver that he has to sign, and include the differences in the policies AND the yearly rates.

Then have him sign it, then I would also send a copy to the carrier, so its on their file and leave a couple copies in various places so you dont lose it! LOL

Have him sign it, get an ink thumbprint, and a vial of blood, because something definately seems hokey about it.

Whats the differences in rate, a couple hundred a year and with a virtual 2 million dollar house, he will fret over a couple hundred,

cover your ASS to the Hilt.........I foresee an arson investigation soon.......

On second thought, sometimes you have to say no to business, I mean, sure, great commission on this, but I seriously see that house being torched and completely ruining your loss ratio. Maybe write it thru a broker, where you dont have a direct code or bonuses.....

My first reaction was, arson?? but this is a pretty big HO account too. Also just a quick fact, that made it even weirder. This is outside of my local area. I'm in the metropolitan area and he called me from upstate about 3 hrs away.

I asked him if he was referred by someone or how did you find me, because i dont normally advertise or work that area, since im metropolitan based. He said oh he hangs out around my area all the time and saw my sign.

Also i subleased one of my tables in my office to a travel agent. and for some reason, when i asked him to fax me his dec page. it went to her fax machine, which i dont even know the number.

 

[Josh]

If he's three hours away, I'd pass that to someone that can look him in the eye. Just a thought.

 

[VolAgent]

What are you doing to keep attracting such situations?

It might be time to drop your ad in Arsonists and Money Launderers Quarterly.

 

[Guest]

What are you doing to keep attracting such situations?

It might be time to drop your ad in Arsonists and Money Launderers Quarterly.

so, I called this one huh?

 

[VolAgent]

so, I called this one huh?

Seriously here. There are plenty of times I think the prospect is lying to me about their health. Usually whenever they are talking, but I can't ever recall a time I thought some money laundering might be going on.

 

[djs]

Ask yourself, "Why?"
Then ask the prospect, "Why?"

Then show him that the HO-5 (forget HO-3) is probably cheaper than the DP-1 policy he wants, forget the fact that its named perils vs all perils.

Now, here is my likely guesses on some things...
He is in foreclosure, trying to get a loan mod, needs insurance as part of that.
Believes a DP-1 with less coverage is less money. Probably not.
He may not live in the house. He has it rented. DP-1 is a bad move for this, but hey, it can be cheap.
The house won't pass an inspection and he figures a DP-1 won't be inspected????
He doesn't understand that no carrier I know of won't inspect a risk of this size.

Cover yourself.
- The 'its the clients choice' letter is a good start.
- Have pictures of the home in your file. Above average chance of a claim, potentially for existing damage.
- Ask him upfront if he has any valuables he needs to have a floater on. Make sure you document his answer and have him sign this.


Dan