Insurance Company Reverses its Denial of its Insureds’ Claim
If an agent (or anyone who sells you insurance) says one thing, and you buy the insurance with that assurance of coverage, the insurance company cannot later trick the insured with some fine-print, hard-to-understand exclusion and deny a claim for loss.
The potential plaintiff in this case (“owner”), was storing his property in a rental storage unit. The owner’s property was destroyed when the storage facility removed the flooding controls to the unit, it rained, and the rain destroyed the property with water damage. Insurance company denied owner’s claim for reimbursement due to an exclusion in the policy for “surface waters” damage. However, the agent who sold the policy told owner that water damage was a covered event.
After attorney Brian Pedigo went back-and-forth with the company in several phone calls and letters, the insurance company agreed to settle for the policy limits of $5,000.

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