Legal Question in Insurance Law in Pennsylvania

Homeowners Insurance misrepresented/incorrect information

We moved from Pennsylvania to Mississippi a few months ago, and prior to arranging the move, I called my insurance agent (in Shamokin, PA) to inquire about my coverage during the move. I specifically asked if I should purchase any additional coverage from the mover, and was told NO, that my homeowners coverage is identical, and it would be a waste of money. Well, our furniture was heavily damaged by rain seeping into a leaking truck, and the insurance company stated that I was not covered for this damage. The moving company told me that had I purchased coverage from them, I would have been fully reimbursed for the loss. My insurance agent admitted to the claims office that they told me NOT to purchase the additional insurance, but the claim was still denied (twice) by the company (interestingly, it was initially denied without ever asking the nature or origin of the damage). Do we have a case against the agent, perhaps recovery under E&O coverage required by all agents? We received only a small percentage of the total loss by the moving company, under the federally required insurance of $0.60/lb. Our out-of pocket damage exceeded $3,500.


Asked on 1/15/00, 7:00 pm

1 Answer from Attorneys
Steven Murray Steven W. Murray, APC

Re: Homeowners Insurance misrepresented/incorrect information

You can sue the agent for negligent advice and, if he

is a real "agent" for the insurer, the insurer is

liable as his "principal." ( Just like an employer

is responsible for the wrongful act of his employee.)

You may have a bad faith case against the insurer

also, as well as a fraud case against both. Saying

something to someone who is going to rely on it when

you don't know what you are talking about is a form

of fraud.

Your insurance should cover this loss since, and

it would be interesting to know why your claim was

denied. Pennsylvania law requires that the insurer

state its reasons for denying a claim in writing.

At least get the specifics of why you are not being

paid and you can sue in small claims, or try to get

a lawyer who can get you back damages for the

inconvenience and loss of use you are still incurring.

By the way, is the insurer State Farm?

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Answered on 1/20/00, 9:16 pm


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