already existing homeowners policy, can i ad a car policy and bundle on a deceased persons homeowners ins.?

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My sister went to AAA Insurance to take a homeowners insurance policy out and bundle her auto insurance with it. Meanwhile she is the beneficiary owner of the mortgaged home she inherited, and on the deed also. She went to AAA to set up a bundled policy when there was already a homeowners ins. policy with AAA for the home from the person whom she inherited the home from. She did not realize this because the ins. was being paid by chase and didnt know that the home was already insured by AAA. So she thought she was buying and changing the homeowners insurance company in her own name , when AAA just added her vehicle to a preexisting AAA policy? Is that legal for AAA to do that? The agent that added her vehicle to the existing policy did not tell her that there was an existing policy already. And that he was just going to add the vehicle to pre existing policy.”

Asked July 20, 2017

1 Answer

The facts stated in your question are not entirely clear. The agent would have to meet strict legal requirements before allowing your sister to make changes to another person's insurance policy.

If the prior owner is no longer living or the legal owner of the house, the insurance agent would need to get notification from the executor of the will, the bank or title company (in case of sale), or other entity to remove the person’s name or cancel the policy.

If the title to the house was already legally transferred to your sister's name and the prior owner no longer has any legal interest in the home or the policy, the agent should write a new policy, and then bundle the car with the new policy.

If the change in home ownership has been recent, it may take time for the legal documentation to be filed. In order to make sure the policy covered your sister, the agent could have just added your sister's name to the existing policy as another resident or inheritor, pending completion of all the legal requirements to remove the prior owner. This would provide coverage for the house and your sister's belongings, and make her eligible immediately for the auto/home bundle discount, while the legal process is finished.

Your sister should set up an appointment to meet with the agent to go over her questions again. Give the agent the benefit of the doubt. She may have made temporary changes to make sure your sister was covered and qualified for the discount until the paperwork was settled.

Answered July 24, 2017 by Insurity

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