Polybutylene Plumbing and Home Non Renewal/repair

[AZDave]

Travelers is requiring that insured have entire home re plumbed, with no polybutylene used in structure. Probably one of the very last homes that used this crap material. Crazy, the home is located in Scottsdale; built 1989, concrete roof, two story - at the market high sold for $800K.

How would you handle this?

(They just had a $2000 claim, and the adjusters report tipped them off. )

I'm thinking I should take action before notice of non renewal goes out, find them a new carrier that does not ask type of plumbing and will allow the one claim. They have not been non-renewed yet, so no need to disclose. But will be soon. 11/1 is the renewal.

Then the question, who wants it? And it seems a matter of time before another water damage claim.

Or, get your house re plumbed as the only option.

I do not like personal lines, at all, anymore.

Dave

 

[Gulfman]

Jaysus...i take it you ran it by all the majors.

How long they been in the home?

IF no one will handle it, how much to repipe?

I would check the Inspectors EO policy if its a recent purchase. How did this happen?

 

[djs]

My suggestion is go for the re-plumb, but until that happens, rewrite it somewhere.

Was the recent loss related to the plumbing? If so, this might be a hard placement.

Dan

 

[AZDave]

Yup, plumbing claim. Then adjuster notified Travelers.

I know, hard placement for us good guys who want do it right. I guess that is part of the problem: If I wait for non renewal, then two strikes against them (claim + non renewal). If I place it now, then only the claim and me knowing that a future water damage claim will occur with that carrier.

To replumb is not cheap, and pretty sure not an option for this homeowner. But have not had the discussion with them, yet.

 

[insurance1822]

This will ultimately end up w/ you throwing an E&S quote at them, then they'll go to State Farm or some captive who won't care & jam it through to hit their numbers & you'll look bad.

Refer it out now. With your knowledge of the circumstance, you're screwed.

 

[Gulfman]

This will ultimately end up w/ you throwing an E&S quote at them, then they'll go to State Farm or some captive who won't care & jam it through to hit their numbers & you'll look bad.

Refer it out now. With your knowledge of the circumstance, you're screwed.

Might be the best thing to do...

 

[InsCommentary]

"I'm thinking I should take action before notice of non renewal goes out, find them a new carrier that does not ask type of plumbing and will allow the one claim. They have not been non-renewed yet, so no need to disclose. But will be soon. 11/1 is the renewal"

While I'm not an attorney, as an agent of the insurer(s), you likely have a legal obligation under the law of agency to disclose what you know at the time you gain that knowledge.

 

[FL P&C Broker]

He said he would disclose the claim. He doesn't know if they are going to be non renewed or not...

 

[AZDave]

" the law of agency "

That's funny!

Where Art Thou Laws?

It's great to have our friends from the VU here. Always spot on with policy language and coverage determination. Often times us agents in the field deal with situations that are not all that black and white, but grey. Doing what is best interest of the customer may not be in the best interest of the company. This policy may well qualify with carrier X. The only question marked 'yes' on the application is the past loss. Should an agent place it with carrier X with the knowledge that a future claim may occur from that crappy pipe? Nothing in my contract with them that would be broken. The application is truthful.

And that was the purpose of the post.

My action:


Get your pipes replaced, or you will be non renewed.

 

[insurance1822]

^ya I love when the insurance police put their sirens on.

They're not gonna replace the pipes & again..State Farm or some *** captive will write it & that client will leave thinking "this guy told me I had to replace all the darn pipes & if I didn't shop him I'd be out of pocket all that money."