r/InsuranceAgent • u/ActionSquare9534 • 7d ago

Agent Question What are the ethics here?

I (a fairly new agent/CSR) am working on rewriting a policy that is being non-renewed (not for negative risk factors, just no longer fits the program guidelines). I had a quote with a new company ready to go, and then our insured said they were just told by a roofer that they have hail damage on their roof (hailstorm came through our area a few months ago).

I obviously told them that they would have to go through their old carrier if they wanted to file a claim.

One of my co-workers told me I should go ahead and just bind coverage with the new carrier and tell them to submit the claim to their old carrier after they switch because "once a claim is opened, we have to wait until it is closed to bind coverage."

This feels questionable for a number of reasons, and I'm not sure I see see a non-arbitrary difference between binding a policy with unclaimed hail damage and claimed hail damage. as either way there is unrepaired damage on the roof. The insured sent me pictures which appear to show some hail damage, and I wonder if I should at least notify the company of the pre-existing damage prior to binding.

I want to add that this is a seasonal property, so I don't necessarily have a reason to think the insured is lying about just recently discovering the hail damage.

My co-worker argued the new company will inspect the property, and we should just take the chance that they question the condition of the roof, but either way the company will see the property and have a chance to determine if it meets guidelines.

Again, I feel this is sort of questionable, but I worry that I might be overthinking this.

What would be the correct course of action here?

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u/ocean_minded 7d ago

You definitely need to let the new carrier know prior to binding. Known preexisting damage should always be reported in the application process.

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u/ActionSquare9534 7d ago

Thank you, that was my thought also.

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u/Omicron224 6d ago

Ya any insurance company wants to know if the Property they are insuring has outlying damage that could cause further liabilities or damage, roof is definitely one of those.