December 16, 2014
Insurance Company: American Family Insurance
Coverage Type: Homeowners Insurance
- Marketing & Sales - Misrepresentation
We are in our seventies and own a very over developed home on 5 acres that stated out as a new (in the late 90's) double wide mobile home that was gutted and rebuilt with a complete new interior, appliances, flooring, cabinets, plumbing, Low E windows, roof, 1" foam added to the 2x6 exterior walls then stuccoed. This home sits on a concrete block stem wall that has a wide raised brick patio also on a stuccoed stem wall was added to around the entire circumference of the home. This patio is covered by a 10' stick built roof on three sides, all of this is permanently attached to the home.
When we purchased this home and shopped for insurance no one would cover it as a stick built home only as a mobile. Well the cost to replace the home with a mobile would be at least twice the cost of a new mobile just to demolish and rebuild all the patios, patio roofs and upgrades that would have to be done so that did not seem like an option.
We talked to the realtor and they sent out an American Family agent he said they would cover it as a regular home with a GOLD STAR SPECIAL DELUXE POLICY and they did. We questioned him several times about the mobile and he took pictures of the house, we talked to the agent for a while and found we had some things in common and were all from Iowa and he mentioned to us that he felt our real estate agent was not above board or doing us any favors. We did not like them either and fired them and used another agent. Later after we purchased the home AM/Fam wrote the policy. Sometime later we got word that the AM/Fam agent had abandoned his office and moved back to Iowa saying that he could not accept the way the company did business, we were then handed over to another agent. Always being suspicious
I had the new agent come to our home to personally have him verify the situation with our home and he also took photos and said there was no problem.
Now 7-8 years latter Am/Fam sends out a contractor to verify the condition of our home, supposedly to see if we had adequate coverage and he took pictures as well and now we get a letter saying we are in a manufactured home and they are going to cancel our coverage.
The upshot of this is that we were scammed by the agent into paying for 7-8 years of coverage that if we had had a claim they would have denied coverage because it was a mobile. We were also getting a deduction for having a security system that every year I emailed the agent that we did not have. He always said not to worry about it.
This Company also covers our two cars a 2600SF two story garage and a separate liability policy.
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