Insurance - Lied to, Scammed and now stuck

Hello everyone,

New to the forums. Well anyways. Let me try to make this brief. My wife and I are first time homeowners we just recently purchased a town home. Well it all started with my wife and I going to a local real estate office. We hook up with a agent and give her our criteria. She tells us she is has a listing (2 story town home) and will be able to help us out ( Dual representation). This listing of hers had some water damage from the washer lines on the ceiling of the 1st floor ( Drywall, sheet rock). Well we were kind of turned away by it but she ensured us that the seller is going to get that replaced ( Out of pocket). Well the repairs were made to the ceiling and afterwards we closed on the town home. Well here we are 2 ½ weeks later and we get this letter from hell.

This letter is from our Allstate stating that they are unable to give us a policy at this time due to a recent claim that has been fulfilled in the amount of $3000. It turns out that no one will insure us right now because of that claim. We were lied to. We were told that the seller was paying out of pocket for these expenses. We finally received our Mortgage letter stating that we would need to insure our property immediately. Both my Wife and I have been taken for ride. I guess my question is what should our next step be? No one will insure us, we might loose the house and we can’t go back now. Thanks in advance for your help.

Interesting. I'll pry be going off on a tangent, but it seems odd that they are "punishing" you for a claim that someone else made on the house. That's like saying that if my house was ever damaged due to lightning strike and I had to make a claim, that when somoene eventually buys the house from me that they can't get insurance. That makes absolutely NO sense. Odds are pry good that any house over the age of 10yrs has probably had a claim at some point or another. Have you called other companies? The house may be uninsurable by those companies because of something that may be wrong with the house now, but even then... they send one of their agents out when you buy the house to look at it and tell you whether they can insure it. I think that all homes are insurable through some sort of insurance company. Here in MI I insure my investment homes (total remodels) through a company called Michigan Basic. If the home is vacant, for whatever reason, for more than 30 days the windows have to be boarded, but even then they still insure it.

Best of luck. Please keep us posted. I'd love to hear how this is resolved.

Christina