ComplaintsforThe Andover Companies

• Initial Complaint

  04/22/2024

  Complaint Type:

  Service or Repair Issues

  Status:

  Answered

  More info

  I am writing to you to complain about Andover Insurance Company. I represent the association who was insured with Andover. The policy number is SBP37055112. Andover posted a claim under our policy and record, on 5-6-2022, claim number ******** in the amount of $17,317.76. The story one condo owner from insured property raised a case against the association. At that time, we asked our attorney for advice. Our attorney recommended that we send our papers to Andover to see if we are covered for that case. The response from Andover was that we do not have any insurance coverage, and they sent us a note denying the claim.On 12/27/2023, we received a notice of nonrenewal from Andover. Since, that day, we have been working with our agent, ************************* and ***** Insurance Agency to obtain another insurance company who can insure our property. After four months, our agent could not provide a decent insurance policy for the property. Time has passed, and we tried to do business with three different agents to obtain insurance for the property. All agents told us there is a block on our association to obtain insurance, because Andover listed our property as high risk.This became high risk after Andover put their own expense of $17,317.76 as a paid claim from our policy. This was an additional claim done in error by Andover. This error caused our claims to increase. This error has caused us to work very hard to obtain insurance for the past five months. Till this day, we have contacted Andover by email and asked them to correct their mistake or to admit their error, in writing, so that we can have documentation to provide other insurance companies when the underwriters ask about our loss run.We have asked if they can continue insurance coverage until we are able to obtain insurance with another insurance company. According to our agent, *************************, they refused to do so. Today, we still have been without insurance for our property, which consists of 31 units in *******.

  

  Business response

  05/01/2024

  We have received your Better Business Bureau complaint and have conducted a thorough review, leading to the following response:
  
  The 5/6/2022 claim in question was submitted by the insureds agent on behalf of the insured (a condominium association) to determine if the insured would have coverage under the insureds condominium master insurance policy.  Andovers ***************** determined that the claim was not covered under the policy.

  
  While nothing was paid to the insured, Andover incurred expenses in the amount of $17,317.76 to adjust (deal with) this claim.  These expenses are commonly referred to in the insurance industry as Loss Adjustment Expenses.  The amount of Loss Adjustment Expenses is not an error.

  
  Incurred losses, which include amounts paid out to insureds, plus Loss Adjustment Expenses are reported to a database maintained by LexisNexis that is utilized by a large number of insurance companies to assess past claims history as an indicator of risk.

  
  The 5/6/2022 claim is not the only claim that the condominium association had submitted to Andover, nor is the 5/6/2022 claim the sole reason for Andovers nonrenewal of the condominium associations policy.   As noted in the insureds complaint, the nonrenewal was not issued until more than 18 months following the submission of the claim, on 12/27/2023.

  
  Andover has not put a block on this account nor classified it as high risk.  In fact, Andover cannot take any such actions.  The decisions made by other insurance companies that the condominium association is high risk and not to issue a policy to the condominium association are conclusions made by other insurance carriers who are not in any way affiliated with Andover and are making such decisions independently from Andover.  Those decisions may or may not take into account the information available in the LexisNexis database about the Loss Adjustment Expenses incurred by Andover associated with the 5/6/2022 claim and reported to the LexisNexis database.

  
  The process of having Loss Adjustment Expenses removed from the LexisNexis database and/or any related report generated from that database is the responsibility of the insured (i.e., the condominium association).  Andover has communicated this fact to the insured by email, along with detailed step-by-step instructions, including screenshots, about how to submit such a request to LexisNexis.  Upon receipt of the request from the insured by LexisNexis, Andover can authorize the change to have the Loss Adjustment Expenses related to the 5/6/2022 claim removed from the LexisNexis database.  As a show of good faith, Andover is willing to have the Loss Adjustment Expenses removed from the LexisNexis database if and when notified of such a request.

  Customer response

  05/02/2024

  Better Business Bureau:I have reviewed the response submitted by the business and have determined that the response does not satisfy or resolve my issues and/or concerns in reference to complaint # ********. Please add your rejection comments below; if you do not provide any details, your complaint will be closed as Answered. 

  I am unsatisfied by Andovers' response to my complaint. They are unwilling to renew our policy until we obtain coverage from another company. Andover has admitted verbally and by emails of their error. Their actions have put us as high risk. Their actions have caused us to be without insurance. I can provide copies of email with employee of Andover, *******************************, claims examiner. We have been working with several insurance agents and have been offered limited insurance policies with sky high premiums. The actions of Andover have made it extremely difficult for us to obtain insurance with a good rate. I can provide copies of several proposals. 

  When I reached out to our agent, ***********************, at ***** insurance agency, I asked if Andover can represent us in regards to a litigation. Andover denied our coverage in regards to the litigation.

  Andover, then filed a declaratory judgement under the Cook County Circuit Courts in *******, ********. They were the ones who took us to court. The case was finally dropped. Andovers expenses are the expenses of their own actions and had nothing to do with our policy. 

  They have to correct this error. I only found out about this when I request a Loss Run in April 2024. This is how I found out about claim number dated 5-6-2022. Andover has to take responsibility for their errors. How can you tell us no coverage and go and add your expenses to our loss run under our policy. To this day, we have not been able to get a good rate or quote for insurance. I can provide you copies of emails. I have dates and names of people whom I have corresponded with.

   [You must provide details of why you are not satisfied with this resolution.  If you do not enter a reason for your rejection, your complaint will be closed as Answered.]

  
  Businesses and Customers should be civil, courteous and polite in their responses to complaints. It is important to remain professional and productive when participating in the BBB complaint process.
  
  FAQ
  
  Regards,

  ******

   

   

  

  Business response

  05/10/2024

  We have received your additional comments and completed a comprehensive review, resulting in the following response:
  
  On June 22, 2022, the insured notified Andover of a liability claim that had been made against the insured. After review, and by letter dated June 29, 2022, Andover advised the insured that there was no coverage for the claim under the policy and that they could either withdraw their coverage request or, alternatively, sign a release of coverage indicating their agreement with the no coverage position.   The letter further advised that if the insured disagreed with Andovers determination with respect to coverage and electing neither option, Andover reserved its rights to file a declaratory action with a court to resolve the disagreement. 

  The insured neither withdrew their request nor signed the release.  As a result, coverage remained in dispute. For that reason, Andover filed an action for Declaratory Judgment with the Cook County Court in July of 2022.  The underlying claim against the insured was resolved prior to a ruling on the declaratory action and, as a result, the declaratory action was no longer necessary and dismissed. Legal fees for the initial review of the file, the coverage letter, the filing of the declaratory action, and the multiple court appearances prior to the dismissal resulted in Andover incurred legal expenses totaling $17,317. These expenses were for legal fees and costs, not for indemnity.  Andover neither paid any indemnity under the claim, nor misapplied any expenses as indemnity. 

  When the loss was transmitted to the Comprehensive Loss Underwriting Exchange (CLUE), CLUE recorded the $17,317 expense payment as an indemnity payment.  Andover did not record that transaction and does not have the ability to correct CLUEs system.  

  Andover has previously advised the insured that they can file a dispute with CLUE, after which Andover as the carrier - can respond to the dispute and provide clarity to CLUE that the payments made were all for legal expenses and not for indemnity.   While a carrier can file a dispute with CLUE, it requires personal data of the insured.  Because the insured in this circumstance is a legal entity, Andover cannot file a dispute without the personal information of the Trustees/Representatives of the Association.  For that reason, we have advised the insured they can:

  1. Request a letter from Andover advising that the payments made were for legal expenses and not for indemnity, which they can use to contact CLUE or in their efforts to obtain additional insurance. 

  2. The insured can file the dispute with CLUE, and when contacted by CLUE Andover will respond and clarify the payment allocation issue.

  3. The insured can provide the personal data of the parties associated with the Condo and the lawsuit and Andover can contact CLUE to try and facilitate the correction. 

   To date, the insured has simply continued in its request that Andover unilaterally resolve the issue.  For the reasons outlined, Andover does not have the ability to do so.

  
  

  Customer response

  05/13/2024

  Better Business Bureau:I have reviewed the response submitted by the business and have determined that the response does not satisfy or resolve my issues and/or concerns in reference to complaint # ********. Please add your rejection comments below; if you do not provide any details, your complaint will be closed as Answered. 

  Dear Sirs,

  1) Andover denied the claim.
  

  2) Andover raised a court case against us(association).

  3) Andover dropped the case, after they found out that they do not have a case against the association.

  4) Andover put a claim on our record for their own expenses of $17,317.00 by error as they admitted.

  I am including two emails with the facts above as proof for our complaint.

  We are entitled for insurance coverage from Andover until they correct their mistake.

  As of today, we are unable to obtain insurance coverage because of the damage they put on the condo association's record record.

  If Andover can not correct the error, Andover has the obligation to correct this matter moving forward.

  Andover must provide insurance coverage, until they fix this error.

  I appreciate the time and the effort of the BBB.

  [You must provide details of why you are not satisfied with this resolution.  If you do not enter a reason for your rejection, your complaint will be closed as Answered.]
  
  Businesses and Customers should be civil, courteous and polite in their responses to complaints. It is important to remain professional and productive when participating in the BBB complaint process.
  
  FAQ
  
  Regards,

  ******

   

   

• Initial Complaint

  11/29/2022

  Complaint Type:

  Service or Repair Issues

  Status:

  Answered

  More info

  The business has not issued a cashable check for a claim made last year. The work was completed the beginning on 2022 and I have been unable to pay the workers. The insurance company claims their policies have changed and they cant issue the check in someones name, even if they have permission from the other person on the policy, but it has been done in the past. They claim they changed their policies but never notified us. They are refusing to help us get this claim paid for and it will start effecting my credit. I need to get rhe insurance claim paid for as they said they would cover it entirely but have not done so. They strong armed us into getting the wrong policy and wrote it incorrectly. Negligent on their part.

  Customer response

  12/13/2022

  I have not heard from the business in response to my complaint.

  

  Business response

  12/13/2022

  We are sorry to read that you were unsatisfied with your experience with The Andover Companies. We encourage you to continue to work with your claims representative or reach out to our customer service team at your earliest convenience. Please call ************; thank you.

• Initial Complaint

  06/15/2022

  Complaint Type:

  Service or Repair Issues

  Status:

  Answered

  More info

  I contacted my agent about my high premium for my homeowners ins. policy, apparently the Andover Companies ins *** had my house listed at **** square feet premium at $1313.84 which they took from my escrow account, my home is listed at just under **** square feet, so I have been overpaying for approx. 5 years according to my agent. My home was reinspected by Andover and found to be just under **** square feet.Andover adjusted the square footage of my home and gave me a new premium of $1090.50 and refunded me a check for $123.86. This refund is too small it should have been for $223.34. Plus, there should be some compensation for overcharging for approx. 5 years, the mix ** in square footage was their fault, and my agent tells me they Refuse to reimburse me for this mistake. Sir, or Madam I am retired and live on a fixed income, so I watch all my pennies, any help you can give me in this matter is greatly appreciated ****************************

  

  Business response

  06/21/2022

  *****,we were sorry to read about your experience. We encourage you to contact your independent agent with any questions or concerns regarding the policy information submitted to the Andover Companies.  

*Some consumers may elect to not publish the details of their complaints, some complaints may not meet BBB's standards for publication, or BBB may display a portion of complaints when a high volume is received for a particular business. ↩