While this lawsuit may or may not have credence, USAA sells insurance to military affiliated persons without actual direct representation by a local agent.
Most of these sales are by phone and are serviced by unlicensed personel from another state.
If the state of Florida required the use of a local agent then the consumer would be advised in a proper fashion and that agent would be directly responsible to advise the consumer on what the proper coverage is for the risk. Without a qualified person to advise the consumer, the consumer is always at risk.
One other thing. The consumer in this case was probably furnished a final survey when he purchased the property which indicates the flood zone and requirements of the Mortgagee. The closing attorney has more responsibility to advise the consumer he is representing at the closing than the insurance company or an agent.
Danny’s right about the closing attorney or title company providing disclosure about flood insurance.
I am refinancing my home and just received my package. There was a $18.00 charge for flood zone determination. It stated that I “did not need flood insurance”.
Bet the folks in this case received the same at their closing.
THAT’S WHY I ALWAYS OFFER EVERY HO QUOTE A FLOOD QUOTE. WHEN I SELL AN HO POLICY, I ALWAYS WRITE “DECLINED FLOOD POLICY” ON THE INVOICE. THIS SAGE ADVICE WAS GIVEN TO ME BY AN OLD TIMER MANY YEARS AGO. YOU KNOW THE OLD SAYING: “C.Y.A.” IT APPLIES NOW, MORE THAN EVER……
You can pretty much bet that if the property has a mortgage, and its in a flood zone, the mortgage company required proof of flood insurance at closing. And, if the coverage lapsed, would have “forced placed” flood insurance a long time ago.
USAA usually scores at the top of customer satisfaction surveys, at least here in Texas, so in some ways I am surprised that they are the first casualty. On the other hand, having had to deal with the many a USAA insured from a liability standpoint, current or retired military officers mostly, I won’t be surprised if this turns out to be an ego excercise for the policyholder.
Having been a former USAA Policy Services Rep. and Property Claims Representative I can tell you that USAA requires the person quoting or writing the insurance policy to have a license. Not only that, but the training that USAA provides is by far, the best in the industry. I’m thinking the fact this lawsuit even got this far means the insured seriously misunderstood his coverage or the claims rep. was really back logged. Regardless, this is not typical of USAA’s Best Practices. During catastrophes there were always those “ambulance chasters” around and even though the complaints sounded legitimate, many times they were proven to be out of line.
Having been a former USAA Policy Services Rep. and Property Claims Representative I can tell you that USAA requires the person quoting or writing the insurance policy to have a license. Not only that, but the training that USAA provides is by far, the best in the industry. I’m thinking the fact this lawsuit even got this far means the insured seriously misunderstood his coverage or the claims rep. was really back logged. Regardless, this is not typical of USAA’s Best Practices. During catastrophes there were always those “ambulance chasters” around and even though the complaints sounded legitimate, many times they were proven to be out of line.
After reading this article, I am preparing for the number of commercial insured’s who did not have business interruption; power failure and other coverages that must be endorsed to the policy.
*
Florida has a mandatory selection/rejection form for Uninsured motorist and no-fault coverages, that must be signed by the Insured. If the state Insurance Supt. believes that an agent is responsible for notifying a prospective insured of ALL available coverages, then why didn’t mandate a selection/rejection form for “flood” and other coverages.
Flood is clearly excluded in the HO-3, which is a contract that the Insured should have read when purchasing the coverage. Agent cannot be held liable for the Insured’s failute to read the policy.
It’s the old story of property owners declining additional coverage to save additional premiums. Then, when the have a loss,they run to unscrupulous lawyers in attempt to get paid for something that is not covered. Unfortunately, they often suceed.
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FYI. NO FLOOD ZONE-NO FLOOD INSURANCE.
While this lawsuit may or may not have credence, USAA sells insurance to military affiliated persons without actual direct representation by a local agent.
Most of these sales are by phone and are serviced by unlicensed personel from another state.
If the state of Florida required the use of a local agent then the consumer would be advised in a proper fashion and that agent would be directly responsible to advise the consumer on what the proper coverage is for the risk. Without a qualified person to advise the consumer, the consumer is always at risk.
One other thing. The consumer in this case was probably furnished a final survey when he purchased the property which indicates the flood zone and requirements of the Mortgagee. The closing attorney has more responsibility to advise the consumer he is representing at the closing than the insurance company or an agent.
Why isn’t he being sued also?
Danny
Danny’s right about the closing attorney or title company providing disclosure about flood insurance.
I am refinancing my home and just received my package. There was a $18.00 charge for flood zone determination. It stated that I “did not need flood insurance”.
Bet the folks in this case received the same at their closing.
THAT’S WHY I ALWAYS OFFER EVERY HO QUOTE A FLOOD QUOTE. WHEN I SELL AN HO POLICY, I ALWAYS WRITE “DECLINED FLOOD POLICY” ON THE INVOICE. THIS SAGE ADVICE WAS GIVEN TO ME BY AN OLD TIMER MANY YEARS AGO. YOU KNOW THE OLD SAYING: “C.Y.A.” IT APPLIES NOW, MORE THAN EVER……
You can pretty much bet that if the property has a mortgage, and its in a flood zone, the mortgage company required proof of flood insurance at closing. And, if the coverage lapsed, would have “forced placed” flood insurance a long time ago.
USAA usually scores at the top of customer satisfaction surveys, at least here in Texas, so in some ways I am surprised that they are the first casualty. On the other hand, having had to deal with the many a USAA insured from a liability standpoint, current or retired military officers mostly, I won’t be surprised if this turns out to be an ego excercise for the policyholder.
Say what?!? Are you an agent who believes if you don’t live in a flood zone where lenders require coverage you can’t purchase it?
Having been a former USAA Policy Services Rep. and Property Claims Representative I can tell you that USAA requires the person quoting or writing the insurance policy to have a license. Not only that, but the training that USAA provides is by far, the best in the industry. I’m thinking the fact this lawsuit even got this far means the insured seriously misunderstood his coverage or the claims rep. was really back logged. Regardless, this is not typical of USAA’s Best Practices. During catastrophes there were always those “ambulance chasters” around and even though the complaints sounded legitimate, many times they were proven to be out of line.
Having been a former USAA Policy Services Rep. and Property Claims Representative I can tell you that USAA requires the person quoting or writing the insurance policy to have a license. Not only that, but the training that USAA provides is by far, the best in the industry. I’m thinking the fact this lawsuit even got this far means the insured seriously misunderstood his coverage or the claims rep. was really back logged. Regardless, this is not typical of USAA’s Best Practices. During catastrophes there were always those “ambulance chasters” around and even though the complaints sounded legitimate, many times they were proven to be out of line.
After reading this article, I am preparing for the number of commercial insured’s who did not have business interruption; power failure and other coverages that must be endorsed to the policy.
*
Florida has a mandatory selection/rejection form for Uninsured motorist and no-fault coverages, that must be signed by the Insured. If the state Insurance Supt. believes that an agent is responsible for notifying a prospective insured of ALL available coverages, then why didn’t mandate a selection/rejection form for “flood” and other coverages.
Flood is clearly excluded in the HO-3, which is a contract that the Insured should have read when purchasing the coverage. Agent cannot be held liable for the Insured’s failute to read the policy.
It’s the old story of property owners declining additional coverage to save additional premiums. Then, when the have a loss,they run to unscrupulous lawyers in attempt to get paid for something that is not covered. Unfortunately, they often suceed.