Beware! Policy Rescission – Review Your Policy.
A tragic and increasing trend among insurance companies is the rescission of your insurance policy after you have suffered a loss. This vile practice by insurance companies is also known as “post loss underwriting.” A typical policy rescission scenario occurs as follows:
A fire occurs and the insured’s property is burnt to the ground. The property is a total loss and thankfully, the insured purchased $500,000 in coverage for just such an event. The insurance company investigates the loss and examines the insured’s application for insurance that was filled out years before the loss. The insured receives a letter in the mail that states, “regrettably, we cannot afford coverage for your loss. Your policy has been rescinded due to your misrepresentation in the application that was material to the risk insured. You stated in your application that you have not had a lien filed against you in the last 5 years. Our investigation reveals that you did in fact have a lien filed against you. Therefore, your policy is void from its inception.”
Read more about this practice and how it can be addressed in the Practice Area entitled, Policy Rescission.
If you find yourself in the frightening position of facing Policy Rescission by your insurance company for property insurance covering your residential or commercial property, contact Miami Insurance Lawyer James C. Ligman P.A. immediately for legal assistance.