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Insurance Carrier: Liberty Mutual
State: Illinois

Consumer Complaint:

I updated my policy in Nov. 2003. I have the policy updated coverage in hand. The original policy was with Prudential Financial but was bought out by Liberty Mutual. I was not notified of any changes, just who to pay and where to send the payment. Under the updated policy it said I was covered from seepage or leakage of water, stream, sewage, or mud.

My basement had about 2 1/2 ft. of sewage from heavy rain downpour. I faxed the policy to them and they say according to their records I did not have sewage backup coverage and my claim is denied. What can I do now? We have heard that after a buyout that they can change coverage without notification. Is that true? we have had no contact with an agent from them at all.


Insurance Expert Answer:

At ANY renewal the Company can change the form of policy it uses -- and as policy terms are usually a year, they may well have used a new form. When Liberty Mutual bought Prudential Property and Casualty Company your policy would have been continued as is until the end of the policy year. Then you would have been issued a new Liberty Mutual policy. It is RARE that an insurance company will not send a NEW form of policy on each annual renewal, as usually there are several policy changes requiring new forms. As I understand homeowners in Illinois (and I am NOT an expert on that), the standard form of coverage excludes municipal system back ups. Are you saying you NEVER got any new policy from Liberty Mutual since 2003?