Pemco Mutual Insurance Company

Thank you for the opportunity to respond to Ms [redacted] 's concernTim W [redacted] notified me of this situation so I could respond.Ms [redacted] 's premium did go up as she notedIt is important to note that no insurance rates can be increased without approval by the Oregon Office of InsuranceAs an insurance company, we must keep data on costs of claims and operations and ensure the premiums coming in are adequate to cover lossesWe are constantly analyzing the dataOur analysis led to an approved change in rates effective June 15,The new rates were applied to Ms [redacted] 's policy when she renewed the policy October 2, The new rates were appropriately applied.The rates will remain the same.Since its very beginning Insurance has always been a pooling of money to pay for lossesIt comes from the fact that few individuals can sustain a large toss on their own For example,it is not uncommon to have auto accidents that end up costing over $ Most individuals do not have hundreds of thousands of dollars to pay for such lossesSo people have learned the best way to protect themselves against losses is to pool their money with others so when a loss occurs that pool pays for the lossEach person in an insurance pool pays a rate depending on such variables as age of drivers,type of car,locationWith the recent rate change, PEMCO's rates for her simply reflect the new amounts required based on her variables.Educating the consumer on the concept of insurance pooling is not part of the paperwork sent to our customers because it is thought most consumers already understand that concept when they purchaseinsurance If you have any further questions, please contact me at 206-628-or 1-800-467-3626,ext***

Complaint: [redacted] I am rejecting this response because:When purchasing my home and in the escrow process, I was tasked with locating home owners insuranceI was having a difficult time due to the home being older and it needing some work doneNot that there weren't companies that would insure the home, but that the rates were quite highI then contacted the seller and asked who the home was currently insured with and was advised it was PEMCOI reached out to PEMCO for a quote.The agent had a list of questions that she presented to meI answered the questions and also advised her that the home was currently insured through PEMCOShe then was able to look at the current policy for additional information that I may not have been able to provideIn addition to this, I had advised the agent that I would be doing some updating on the home and discussed my plansWe discussed much more than just the sidingI wanted to be clear and upfront with my concerns WHILE IN ESCROW so that anything that needed to be address could be addressed BEFORE CLOSING on the propertyI also asked if doing these updates would have an affect on my premiums in the futureShe advised me that although it would be great to have the home updated, that the rates would not adjust much, if at allAs I mentioned, all of this information had been provided to the agent UPFRONT and discussed BEFORE I even owned the property.In addition, when the agent came back and made me aware of the issue regarding the siding, I had advised her that it would be addressed in the next couple of monthsThat I just needed to wait for the snow to meltShe responded by telling me that her underwriters would not insure the property at all and that I would have to go through another companyWe then had some back and forth discussion where we were attempting to figure out a timeline for the work to be completed, but everything I was presenting was being rejectedI then received notice in the mail of the policy termination on June 6, I immediately got back in touch with the agent and advised her that the siding would be completed by June 6, and the policy can continueSo to state that you have no record of any repairs planned is a outright falsityThe agent was well aware of my attempts to work within PEMCO's guidelines to correct the issue.As far as my not having a contractor's license, you are absolutely correct"I" am not a contractor, but my boyfriend isNot only is he, but we have quite a few connections within the construction industryJust because I have the ability to have contractors assist me on a project without having to pay them does not mean that the work will not complyAs for the inspection report, PEMCO had never requested a copyNot until AFTER I received the termination notice and AFTER I advised the agent that we would be doing the work "ourselves" meaning I would not be billed for time, just materialsBesides, I am not quite sure what an inspection letter would do, other than verify that the siding needs to be replaced, which clearly would not provide any benefit to either partyEither way, the siding project has already begun, and as I mentioned will be completed, including painted, by June Sincerely, [redacted] ***

Here is the entire email chain between myself and the PEMCO representativeAs you can see, this has been an ongoing issue and I have made many attempts to work with them, but keep getting told different things at every turnI am no longer interested in working with them, but their bullying and shady practice needs to endIt is not ok for them to be able treat people in this manner. If you paid for your own inspection report we do not have a copy. That’s why she’s asking if you do have one she would like to review and if not then she would need verification from an electrician that all wiring is updated and also the plumbing verification Thank you, *** From:*** Sent:Tuesday, May 16, 1:PM *** Subject:Re: PEMCO HOMEOWNER INSURANCE No worriesThis is all new to me as of todayI have never heard of insurance companies doing this, nor do I know where you received a copy of my inspection report fromFor you to obtain a copy of my report without my knowledge or permission is shady practiceI have filed a complaint with both the Revdex.com and insurance commissioner On Tue, May 16, at 1:PM, Marilou wrote: Hi ***, My apology, I re-read her stipulation from April and one them was to review an inspection report if one had been done by you. On the inspection reports it details wiring and plumbing Thank you, Marilou From:*** Sent:Tuesday, May 16, 9:AM To:Marilou Subject:Re: PEMCO HOMEOWNER INSURANCE So I am confusedYou have sent me a punch list of the repairs that need to be madeI am putting forth a lot of effort to correct these issues, and now you are telling me that I need to do more? Nothing has ever been stated regarding plumbing or electrical, other than the treesAND I HAVE IT IN WRITING!!! This is getting ridiculous! Never once was anything mentioned of any kind of inspection, just photos and invoicesYou guys have insured this house for years and now all of a sudden there are issuesI am filing a complaint with the Revdex.com and whoever else necessaryThis is out of line! On Tue, May 16, at 9:AM, Marilou wrote: Hi ***, If you’re not having an inspection done once the work is complete, other than the pictures of the completed work she would also like a written verification from a licensed electrician that all electrical is updated and up to code and verification there’s no galvanized plumbing Thank you, Marilou From:*** Sent:Monday, May 15, 4:PM To:Marilou Subject:Re: PEMCO HOMEOWNER INSURANCE Will receipts for materials suffice? We are in the construction industry and will be doing the work ourselves. On Mon, May 15, at 4:PM, Marilou wrote: Receipts from contractor that will be doing the repairs Thank you, Marilou From:*** Sent:Monday, May 15, 3:PM To:Marilou Subject:Re: PEMCO HOMEOWNER INSURANCE Thank youWhat else besides the photos would you need for proof? On Mon, May 15, at 3:PM, Marilou wrote: Hi ***, That sounds great. Once completed here’s what I’ll need to submit to my underwriter: 1. Pictures of: a. All sides of the home b. Cut back tree branches c. Secured crawl space d. Railing on rear porch e. Proof of all repairs Thank you, Marilou From:*** Sent:Monday, May 15, 2:PM To:Marilou Subject:Re: PEMCO HOMEOWNER INSURANCE Hi Marilou, I see that my HO policy is scheduled to cancel onJune I just wanted to let you know that I am intending on having all of the repairs completed by then and the policy can continue on Regards, *** On Tue, Apr 18, at 11:AM, Marilou wrote: Hi ***, I was really hoping that the Agency department would be able to provide coverage and give you until summer to do the repairs. Sounds like *** *** has also tightened up their guidelines. Let me reach out to a couple of our outside agent’s and see if they have coverage available Thank you, Marilou From:*** Sent:Tuesday, April 18, 7:AM To:Marilou Subject:Re: PEMCO HOMEOWNER INSURANCE Good Morning Marilou, I spoke with Paul last night, and I guess I'm just wondering what the point was in having him reach out to meI was under the impression that since the coverage you had offered had fallen through, that he would be able to assist meHe basically told me the same thing that you have already advisedIt was a very frustrating phone call Regards, *** On Mon, Apr 17, at 1:PM, Marilou wrote: Will do Thank you, Marilou From:*** Sent:Monday, April 17, 1:PM To:Marilou Subject:Re: PEMCO HOMEOWNER INSURANCE Yes pleaseThank you for looking into this *** On Mon, Apr 17, at 1:PM, Marilou wrote: Hi ***, My apology my underwriter is unable to make an exception to continue coverage. We have an Agency department that can give you quote, please let me know if you’d like an representative to email you that quote Thank you, Marilou From:*** Sent:Friday, April 14, 8:AM To:Marilou Subject:Re: PEMCO HOMEOWNER INSURANCE Thank you Marilou! Have a nice day and a great weekend! On Thu, Apr 13, at 8:AM, Marilou wrote: Hi ***, I’m waiting to hear back from the underwriter who is out of the office today. I’ll contact you Monday once I hear from her Have a great day Thank you, Marilou From:*** Sent:Tuesday, April 11, 2:PM To:Marilou Subject:Re: PEMCO HOMEOWNER INSURANCE Marilou, One of the contingencies on the sale of the house was insurance coverageI reached out to PEMCO because they held the current policyIn turn, PEMCO provided myself, escrow, and the lender with a policy only to turn around after the close of the sale and back outThis practice in unethical and I would like to get it resolvedI have advised that I would be making the required repairs in a timelymanner as they are all minor and with the exception of the siding, can be done in one weekendWith that, I expect PEMCO to fulfill their obligation as stated in the purchase of the home by the close of business on 4/12/or I will be leftwith no option other than to report the agency to the consumer division of insurance affairs and the state attorney general. Regards, *** *** On Tue, Apr 11, at 12:PM, Marilou wrote: I requested for a time frame but my underwriter is not willing to continue coverage until all recommendations have been completed Thank you, Marilou From:*** Sent:Tuesday, April 11, 12:PM To:Marilou Subject:Re: PEMCO HOMEOWNER INSURANCE So you are unable to provide me with a time frame to complete the requested repairs? On Tue, Apr 11, at 12:PM, Marilou wrote: Hi ***, We underwrite and do an initial inspection when we write a policy, so if the home was previously inspected by PEMCO it may have been a long time ago so we would be unaware of the current condition of the home. Once you’ve completed the recommendations we can re-visit a quote, for now I can refer you to our Agency department Thank you, Marilou From:*** Sent:Tuesday, April 11, 12:PM To:Marilou Subject:Re: PEMCO HOMEOWNER INSURANCE Hi Marilou, I guess I am not clear on what the issue isPEMCO has been insuring this home prior to my purchasing it and these items have not been an issue nor requested of the previous homeownerIn addition, when I was in the process of purchasing the home I had made it clear that the home was in need of work and these items would be updatedI am not sure why the "inspector" did not come to the house while it was in escrow and these issues could have been addressed with the sellerRegardless, the issues that you mention above are minor with the siding being the biggest of themAs I stated, this is the first project I intend to tackle and will be done within the next couple of monthsThere is no need to refer me to a different carrier Regards, *** On Tue, Apr 11, at 12:PM, Marilou wrote: Hi ***, In order to qualify for the homeowner insurance coverage all repairs have to be completed and we’ll need to review an inspection report once all work has been done 1) The siding is showing heavy deterioration in many areas. The siding has reached its life expectancy and needs to be replaced2) Incoming electrical drop needs to have tree branches cut back3) Crawl space cover needs to be secured4) Open sides on rear porch steps do not have any protection/railing Since it’ s going to take some time for you to complete I will need to refer you to our PEMCO Agency department for coverage through a different carrier. Please let me know if you’d like to have a representative work up a quote. Thank you, PEMCO representative for years

Thank you for the opportunity to respond to the customer’s inquiry We identified the need for the replacement of the siding during a routine inspection of the propertyWe have no record of any repairs or renovations planned for the property Had we been aware of the need for
replacement of siding, we would not have issued the policy We noted the application states her occupation is in IT and we attempted to verify a contractor’s license in Washington and Oregon but were unable to locate an active or expired licenseGiven the nature of the repair work required we requested invoices from a contractor or an inspection to ensure the work was completed to comply with local building requirementsWe did ask for a copy of the home inspector’s report for reconsideration, however this was not provided We attempted to assist the customer with alternate coverage through the PEMCO Agency however they were unable to offer alternate coverage due to the noted condition issuesWe consulted an independent agent for assistance in finding a carrier that would issue a policy during the repairs and asked the agent to contact her for a quote In accordance with the terms of our contract we notified the customer that coverage would end on June 6,

Thank you for the opportunity to respond to Ms. [redacted]'s concern. Tim W[redacted] notified me of this situation so I could respond.Ms. [redacted]'s premium did go up as she noted. It is important to note that no insurance rates can be increased without approval by the Oregon Office of Insurance. As an...

insurance company, we must keep data on costs of claims and operations and ensure the premiums coming in are adequate to cover losses. We are constantly analyzing the data. Our analysis led to an approved change in rates effective June 15,2016. The new rates were applied to Ms. [redacted]'s policy when she renewed the policy October 2, 2016. The new rates were appropriately applied.The rates will remain the same.Since its very beginning Insurance has always been a pooling of money to pay for losses. It comes from the fact that few individuals can sustain a large toss on their own.  For example,it is not uncommon to have auto accidents that end up costing over $100 000.  Most individuals do not have hundreds of thousands of dollars to pay for such losses. So people have learned the best way to protect themselves against losses is to pool their money with others so when a loss occurs that pool pays for the loss. Each person in an insurance pool pays a rate depending on such variables as age of drivers,type of car,location. With the recent rate change, PEMCO's rates for her simply reflect the new amounts required based on her variables.Educating the consumer on the concept of insurance pooling is not part of the paperwork sent to our customers because it is thought most consumers already understand that concept when they purchaseinsurance.
If you have any further questions, please contact me at 206-628-6096 or 1-800-467-3626,ext. [redacted]

Complaint: [redacted]
I am rejecting this response because:When purchasing my home and in the escrow process, I was tasked with locating home owners insurance. I was having a difficult time due to the home being older and it needing some work done. Not that there weren't companies that would insure the home, but that the rates were quite high. I then contacted the seller and asked who the home was currently insured with and was advised it was PEMCO. I reached out to PEMCO for a quote.The agent had a list of questions that she presented to me. I answered the questions and also advised her that the home was currently insured through PEMCO. She then was able to look at the current policy for additional information that I may not have been able to provide. In addition to this, I had advised the agent that I would be doing some updating on the home and discussed my plans. We discussed much more than just the siding. I wanted to be clear and upfront with my concerns WHILE IN ESCROW so that anything that needed to be address could be addressed BEFORE CLOSING on the property. I also asked if doing these updates would have an affect on my premiums in the future. She advised me that although it would be great to have the home updated, that the rates would not adjust much, if at all. As I mentioned, all of this information had been provided to the agent UPFRONT and discussed BEFORE I even owned the property.In addition, when the agent came back and made me aware of the issue regarding the siding, I had advised her that it would be addressed in the next couple of months. That I just needed to wait for the snow to melt. She responded by telling me that her underwriters would not insure the property at all and that I would have to go through another company. We then had some back and forth discussion where we were attempting to figure out a timeline for the work to be completed, but everything I was presenting was being rejected. I then received notice in the mail of the policy termination on June 6, 2017. I immediately got back in touch with the agent and advised her that the siding would be completed by June 6, 2010 and the policy can continue. So to state that you have no record of any repairs planned is a outright falsity. The agent was well aware of my attempts to work within PEMCO's guidelines to correct the issue.As far as my not having a contractor's license, you are absolutely correct. "I" am not a contractor, but my boyfriend is. Not only is he, but we have quite a few connections within the construction industry. Just because I have the ability to have contractors assist me on a project without having to pay them does not mean that the work will not comply. As for the inspection report, PEMCO had never requested a copy. Not until AFTER I received the termination notice and AFTER I advised the agent that we would be doing the work "ourselves" meaning I would not be billed for time, just materials. Besides, I am not quite sure what an inspection letter would do, other than verify that the siding needs to be replaced, which clearly would not provide any benefit to either party. Either way, the siding project has already begun, and as I mentioned will be completed, including painted, by June 6.
Sincerely,
[redacted]