Info Insurance

As the result of an agent selling worthless homeowners insurance policies to Florida residents, dozens of elderly are now at risk of losing their homes, the Department of Financial Services said on Thursday. Numerous complaints were filed against the agent only to reveal that she had been using money received to pay her personal expenses.

Residents Left Without Coverage

According to the department, 50 complaints were filed with the state that residents in Sarasota County had paid their insurance premiums for as long as two years to Debra K. Wanless who was supposed to be providing coverage from Lloyd’s of London (which is not a regulated carrier in Florida). But instead of using the money to apply to their policies, she was spending the money on her own gas and food.

Her act has left the mostly elderly group without coverage, meaning they are not only without coverageif there is damage to their homes, but if they are in the middle of paying for a mortgage (which requires homeowners insurance during the loan term) they could lose their homes.

Late Thursday, the department filed an emergency order against Wanless alleging that she’d preyed on senior citizens living in manufactured homes where private insurance is hard to come by.

The order suspended her license. As a result, she closed Thursday, but not before issuing a $946 refund to one of the policyholders.

Tips for Protecting Yourself from Home Insurance Fraud

In this case, the homeowners were taken advantage of by a skilled scam artist. To help ensure you don’t fall for the same crime, consider these tips for protecting yourself against home insurance fraud:

• Check the company’s background: You could check with your state’s Department of Insurance to see if the company has had any complaints issued–or check that it’s a legitimate insurer to begin with. Wanless had been put on probation and fined $3,500 five years ago for a similar complaint of pocketing premiums.
• Ask for references: If you have friends with home insurance policies, check with them to see how they like their companies before going with one you’ve never heard of.
• Demand a copy of your policy: Many of the people who were scammed by Wanless had never seen a copy of their policy. Before agreeing to pay for coverage, ask to see a copy of your policy from the company. Also, you can contact the underwriter personally to verify your policy numbers are valid.

Nothing feels worse than knowing you’ve been scammed out of hundreds or thousands of dollars, which is why it’s good to take steps to avoid becoming a victim. But if you feel you’ve already been taken advantage of, check with your state’s Department of Insurance to find out how to make fraud claims against your company or agent.

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