Insurance Company Canceled Policy

[Jason V.]

I recently received a notice from my insurance company that my landlord policy was canceled on a newly acquired rental property. The property was bought from a sick family member who quit claim the property to my wife and I without telling us right away (which was a surprise). We had already planned on buying it from him and got a mortgage for the property a few months after the quit claim, complete with insurance. Prior to the closing, I still wasn't aware that the property was entirely turned over to my wife until we purchased the house.  Needless to say, my wife and I were both irritated because of the legal liability we were exposed to. The family member said he did it on the advice of his estate attorney and believed we were ok because he still had the house insured. After shaking my head, I was thankful nothing happened on the property. After closing, the insurance company underwriter canceled the policy because of non-continuous insurance. Does anyone have any avenues here? I find it odd that we could get a policy canceled for ownership of a house we were not aware we owned. I also find it amazing that the owner of a property can quitclaim property to someone without telling the person getting the property. I plan on speaking with the family member's estate attorney and possibly filing a complaint with state licensing.