Broker Cancelled all my Policies

[Andrew M.]

Hello all,

I'm curious how you would handle a situation, or if it has happened to you, how did it play out?

I've got 7 properties (4 traditional SFR rentals, 3 room-to-room rentals), all insured with one local broker. One tenant who subleases/manages two of the properties from me got in touch with them to obtain auto/umbrella policy. In the course of discussion, the tenant brought up that there are elderly people living in the home and someone who cooks, cleans, does laundry, etc.

To make a long story short, the broker called the insurer, asked if it were legal to operate a 'commercial' operation on the current DWF policy we had. With that mis-information, the insurer said no, and they agreed to throw a blanket over all 7 of my policies as 'commercial' and cancel them, the earliest being in 30 days. 

All of this without as much as a phone call to ask. I don't think there is anything wrong with this. It's no different than insuring a room-to-room rental, AirBNB, college rental, etc, simply because the folks are elderly.

Should I try to work it out with them by addressing the facts? Find someone else? Have they crossed so many red lines here that I should be pulling my hairs (the little I have left) out?

[Jay Hinrichs]

i would get with a good insurance agent and go over EXACTLY what your doing.. if your not properly insured and you had a loss they could deny coverage

@Darrin Gross  insures a few hundred of our properties and i have been with him for 20 plus years.. give him a shout he is an expert at rentals and has his own and maybe even some a little like you describe.