ComplaintsforSpotlight Insurance Agency, LLC

• Initial Complaint

  08/02/2023

  Complaint Type:

  Order Issues

  Status:

  Answered

  More info

  I entered into an agreement with Spotlight insurance Agency to purchase home owners insurance for my Condo from Safeco insurance. This policy was to be paid via escrow by my mortgage company. The policy was not in effect until the escrow payment was made. And, per our signed contract, "Will not be effective" in the event of a failed payment. Spotlight did not reach out to my mortgage company prior to the agreement and no payment was ever made. Therefore voiding my insurance policy. When I reached out to my mortgage company, they communicated to me that the condo is already covered by another insurance vendor and that this would have been communicated to spotlight insurance if they had reached out regarding the policy at any time. Spotlight communicated to me that they were unable to reach my mortgage company and still tried to have me pay the insurance policy IN FULL, via a payment method that was not agreed upon in the policy (direct payment). Now that the policy has lapsed and I have not made direct payment on the policy, Spotlight insurance is billing me for more than 2 months of coverage that was never provided. Nor were they ever necessary. Without payment, the policy was never in effect. I am not going to be held liable for insurance that this insurance agency never verified with my mortgage company, it seems like Spotlight never communicated with my mortgage company at all, and has been trying to get me to pay them upfront for an unnessecary policy.

  Business response

  09/08/2023

  We have reviewed this policy and the actions taken to prevent this situation from occurring. The insurance policy was issued at the request of the insured in April and the insured signed an application confirming his request.
  
  This condo policy was issued under with an escrow direct bill plan. The carrier as well as our office reached out to the lender to receive payment from them via the lenders preferred fax and mail. Spotlight Insurance Agency nor Safeco received any correspondence from the lender regarding payment or that this property was already insured under another insurance carrier.  The policy was cancelled due to non-payment and would not be retroactively cancelled per carrier guidelines without proof of other coverage.
  
  We had reached out to the insured via email and telephone,who also never communicated to us that he had other coverage or that he wanted a backdated cancellation. If he had, we would have been able to retro-cancel the policy so no funds would have been due.  Now that we know the situation, we have reached out to ********************************** requesting proof of insurance so we can work with the insurance carrier to address the outstanding balance.

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