Actually, on a more serious note, I want to update folks as to the status of this insurance fiasco, because it’s turned into even more of a trainwreck. And now I need some advice.
To bring everyone up to speed, here’s the very abbreviated version. We’ve been trying to replace a very minimal residential insurance policy, with a full-fledged farm business insurance policy. We thought we had a good policy in the works from Nationwide. We had given them our application information back in December, got underwriter approval, nailed down the various details, and appeared to be about done in mid-February.; The agent asked me to call the mortgage company to get instructions from them on how to switch over our existing policy to the new one. I did that, and the agent sent off the information to the mortgage company.
Then the underwriter suddenly got cold feet over some of our products, and threatened to deny coverage. For the last three weeks I’ve been working closely with the insurance agent to straighten out those issues. When push comes to shove, I now doubt the Nationwide policy is going to go through. The underwriter is now questioning farm products he had no problem with in December, which makes me wonder if he actually even read the policy in November. Or perhaps he got word from on high that they don’t want to cover farms anymore. Whatever. I just get the strong feeling they’re looking for a reason to turn us down. So I started to shop for a policy from other companies. I am very close to getting a policy from someone else; she’s due out here any day to do the site inspection. But that other policy is at least a week away from being finalized.
Then on Tuesday, we got a letter from the mortgage company. It basically said thanks for the update on our hazard insurance coverage, the new policy has gone into effect as of 2/21/2013, and the escrow account has been debited the new premium amount. The next insurance payment will be in February, 2014.
I called the agent and said um, we just got a letter that the policy is already in effect? He said no, it’s definitely not in effect, to his knowledge Nationwide hasn’t been paid, and we have to finish our work with the underwriter (who is stalling the application in several ways). I talked to the other agent we’re working with, and she said no way they’ve got the policy in effect if the underwriter is objecting to this-n-that. But those funds have already been released to *somewhere*.
So now I’m not sure what to do. If I call the mortgage company to say hey wait a minute, the policy isn’t in effect yet, then we’re essentially without coverage and will have to pay for something out of pocket until one of the new policies go through. The soonest either of those will occur, is still at least a week away. We were trying to avoid out-of-pocket costs with this, but now I’m wondering if we’re going to have to pay for something to bridge the gap. Can the old policy be re-instated until we straighten this out? Anyone have any ideas or suggestions on what I should or should not do?