Expert: Karyn Foley - 2/1/2005

Question
An offer on my 2 year old, quality, Montana home was recently withdrawn owing to the comment of an insurance agent who basically stated to the prospective buyer,"Don't buy that home--that stucco is a problem". My home is of native stone and synthetic stucco (EIFS). The EIFS was applied by a reputable company, and the home is located geographically where there has been no predilection for EIFS failure.The warning came from an agent who has never laid eyes on my home and who knows nothing of its quality. The rub is that this is an agent for the company that insures my home, a company against which I have never filed a claim, and the company which has appraised the home for 1.2 mil.
 I am outraged that the sale has been scuttled by an agent of the company of which I am a customer--and by a person who has no basis for his opinion.
 Is this a legitimate question of ethics, or am I, for the first tme, wrong again?

               I would appreciate your opinion,

                         Randy Wisdom

Answer
Dear Mr. Randy:
  I am really almost as outraged as you are!!!  I would immediately write a letter to the head office and let them know who was involved and all the details.  If you feel that this was definitely what killed your sale, you might consider talking to an attorney to see if you have any grounds for any action/damages.  You could also see about canceling your policy and getting another company to represent you.  You should demand a letter of apology from the person who caused the problem, just to make certain that this issue does not come up again.  How about also getting in touch with the insurance commissioner.  This is not an issue to "just put behind you".  While you may get another buyer, without taking this on, this same person could damage the next person even more than you have been harmed.    Please let me know what happens.  Good luck to you - I really respect your asking this question and wanting to do something about it.  KARYN FOLEY