Complaints

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• Initial Complaint

  Date:03/15/2024

  Type:Order Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  Pikes Peak Insurance Agency, LLC was acting as agent (Agent) for ***************************** (Insured) for a homeowner policy on a home that was for sale. Agent was made aware of damages to Insureds home and instructed Insured to file a claim. Insured filed a claim on 7/17/2023 and notified Agent immediately. On 7/18/2023, Insureds home sold. Insured contacted Agent in writing and stated My understanding is that we can cancel the condo policy and the claim endures. If thats the case, please proceed with the cancellation. Agent cancelled the policy. Subsequently, the insurance underwriter denied the claim because the policy was cancelled.The Agent handled all communication and transactions with the underwriter concerning renewing, coverage details and cancellation. Insured authorized cancellation contingent upon claim coverage. The Insured relied on Agents due diligence and expertise. In fact, Insured communicated in writing that Insured did not have access to full policy language and was relying on Agent. Agent made no attempt to discover if cancellation would negatively affect claim. Agent did not act as instructed by Insured.Agent cancelled the policy contrary to Insureds written instructions. Cancellation directly resulted in claim denial.Insured is required to pay an assessment of $32,616.00. This was a covered item under Insureds policy. Agent was aware that Insured is an elderly widow who had recently lost her husband, had a medical condition that made it difficult for her to communicate and was entering assisted living. Agent not only negligently cancelled Insureds policy but also stopped communicating and responding even though Agent represents Insured on other policies and continued to benefit financially. Insured asked repeatedly for Agent assistance with underwriter, and Agent provided no assistance nor made any attempt to remediate the error. Agent continued to avoid Insured until threatened with a complaint with the ******** *********************************.

  Business Response

  Date: 04/24/2024

  Good afternoon!
  
   
  
  The complaint stems from misunderstandings regarding coverage and policy cancellation by the complainant.  Against the direction of Pikes Peak, he proceeded with the home sale before resolving coverage issues thus creating the situation at-hand. Pikes Peak continually emphasized that coverage decisions rest with the insurer and that the complainant needed to confirm everything with the carrier before taking any action with the sale, even admonishing him to wait.  Pikes Peak also continued to impress upon the complainant that he needed to work directly with the carrier as Pikes Peak does not make any decisions related to claims and coverage.  The complainant, however, proceeded with the sale of the property prematurely and without a final resolution of the claim with the carrier. As far as the complaint focuses on the claim accrual date,  this is a red-******* as well as a matter beyond Pikes Peak's scope.  While the situation is unfortunate, it was the complainant who opted to complete the sale of the property before completing his due diligence related to insurance coverage. 
  
   
  
  ********************************, AIC
  
  Ask me about Life Insurance!
  
  Personal Lines Account Manager
  
  PH: ***************************  
  
  FAX: ************
  
  TEXT: ************
  
  PIKES PEAK INSURANCE AGENCY
  
  ************************************************ 221
  
  Falcon, CO 80831
  
  *********************************************