Inappropriate delay to review application

An insured individual contacted us after learning that his property had been uninsured for several weeks. A few weeks prior to his home insurance renewal date, he had compared several different offers in search of a better premium. Pleased with his findings, he secured a lower rate with another agency.

He immediately accepted the new offer. Approximately three weeks before the coverage was set to take effect, his new agent informed him that everything was in order and that he should receive the invoices by mail. He then contacted his previous insurer to notify them not to renew his existing policy.

Nearly six weeks after accepting the offer, he was informed by his agent that the insurer had declined his application. As a result, he found himself without insurance coverage for three weeks and had to seek coverage elsewhere.

Unfortunately, no insurer was willing to insure him.

After reviewing all the documentation, we contacted the insurer. In our view, the insurer had taken too long to assess the application, and the consequences of the refusal were significant for the insured.

Ultimately, the insurer accepted our recommendations and agreed to provide retroactive coverage for a certain period, allowing the insured time to secure insurance elsewhere.