Our February E&O tip reminds agents to always visit the physical property before placing property coverage.
An agent needed to ensure a homeowner had installed a new smoke detector before he was able to issue the homeowners policy the client requested. The client was busy and kept rescheduling the appointment with the agent to inspect the property. The client verbally stated that he had installed the smoke detector and because both the client and agent had busy schedules, the agent decided this was sufficient evidence to confirm the smoke detector was installed and the homeowners policy could be issued. Later that year, a fire destroyed the home and the customer’s homeowners policy was not valid because no smoke detector was installed in the home.
E&O Prevention Tip:
Always visit the physical property before placing property coverage. Do not rely on verbal promises or photos as a valid representation of the property if an inspection is required. In this case, only a physical inspection of the property can truly confirm policy requirements are met.
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