A Pennsylvania insurance agency is refuting allegations by the owners of a Pittsburgh apartment building regarding the denial of a fire insurance claim in 2023 and the subsequent cancellation of the property’s policy due to misrepresentations related to a 2022 shooting incident.
The independent insurance agency asserts that the building owners failed to disclose critical information, including the shooting incident and the prior insurer’s cancellation, on an application for replacement coverage submitted to Frederick Mutual.
In a lawsuit filed last November, the owners of the 900 North Group real estate firm accused the Pleasant Hills insurance agency Eber & Associates of submitting an inaccurate insurance application to Frederick Mutual in December 2022 without their consent. This application was made after Nationwide Insurance declined to renew their policy following a shooting incident in April 2022, resulting in fatalities and injuries.
The property owners contend that they informed Eber & Associates about the shooting and Nationwide’s non-renewal. However, Eber & Associates denies being notified about these events and maintains that one of the property owners electronically signed off on the insurance application via DocuSign.
Eber & Associates asserts that the property owners did not disclose crucial details about the property’s history, including the shooting incident and prior insurance issues. They claim to have relied on the owners to provide accurate information for the application.
Following a fire in April 2023, the property owners submitted a claim to Frederick Mutual, which was declined due to discrepancies discovered in the insurance application. Frederick Mutual subsequently rescinded the insurance policy on October 9, 2023.
The property owners allege that Eber & Associates failed to obtain necessary information for the application and that most of the inaccuracies were contrary to information provided during initial discussions.
According to the complaint, an employee of the insurance agency informed 900 North Group via email in December 2022 about the insurance coverage being bound, but the owners claim they never received an email from DocuSign or saw the application.
Due to the misrepresentations, Frederick Mutual denied coverage for the April 2023 fire damage and rescinded the insurance policy.
