Travelers Class Action: Homeowners Tricked Into Buying Rot Coverage

A class action filed in Philadelphia state court claims that Travelers sells rot insurance to homeowners but fails to disclose their extreme terms.

Travelers Home and Marine Insurance Co. reportedly sells consumers additional homeowners insurance coverage for rot and fungus damage but doesn’t tell consumers that the certain causes of rot aren’t covered in their claims.

Plaintiffs Sean and Jamie Rose reportedly purchased a homeowner’s insurance policy from Travelers that included additional coverage for fungus, microbes, and rot damage for an increased cost.

This additional coverage reportedly included “limited ‘fungi,’ other microbes or rot remediation coverage,” including the removal of rot and replacement of damaged property – assuming the rot was a result of a covered cause that was reported promptly by the homeowners.

When a pipe broke in their kitchen and master bathroom in August 2018, the couple expected their homeowner’s insurance to cover the damage. However, their insurance representative reportedly claimed that the broken pipe had been leaking for weeks, months, or years – thus invalidating their coverage.

“Rot is indicative of an ongoing presence of moisture for weeks, months and years. Since water damages that occur for a period of weeks, months or years are excluded, your policy does not provide coverage,” said a Travelers letter to the family in October.

Travelers representative Janene Harlieb allegedly visited the Rose’s house to take a statement from the homeowners after the water damage. When investigating the water damage, Harlieb allegedly claimed that she didn’t see how Travelers would pay for the damage despite the couple purchasing additional coverage in their homeowner’s insurance policy.

“Ms. Harlieb indicated that she was not aware of why there was rot coverage as there was no situation for which Travelers would pay for rot,” the couple claims in their recent Travelers class action lawsuit. “Defendant, despite demand for benefits under the policy, has refused without legal justification or cause, and continues to refuse to pay to plaintiff monies owed for the damages. […] As a direct and factual result of defendant’s breach of contract, plaintiff has been denied the benefits of its bargain with Travelers.”

The plaintiffs claim that this failure to cover their damage is a breach of contract, bad faith conduct, and a violation of Pennsylvania consumer protection laws. The insurance company allegedly manipulated consumers into purchasing additional rot coverage but never intended to follow through on claims under this coverage.

“The practice of Travelers in interpreting the portion of the policy, advertised as ‘additional coverages,’ despite the intention to never provide this additional coverage which is otherwise provided in this policy and was provided in previous policies, has been perpetrated by Travelers maliciously and in conscious disregard for the rights of its policyholders solely for the financial advantage of Travelers,” the Roses claim.

The Roses seek to represent a Class of Pennsylvania residents who purchased rot coverage for an additional cost under their Travelers homeowner’s insurance but were denied coverage when making claims.

The Travelers insurance class action lawsuit seeks compensatory damages, other damages, court costs, and attorneys’ fees.

Plaintiffs and the proposed Class are represented by Anthony DiUlio of Wheeler DiUlio & Barnabei PC.

The Travelers Insurance Rot Coverage Class Action Lawsuit is Rose v. Travelers Home and Marine Insurance Co., Case No. 190103305, in the Philadelphia Court of Common Pleas.