A Wisconsin woman inherited a property from her father in early 2002. Her father had insured the property for $150,000, and the woman and her husband later procured a policy for the same amount through an insurance agent. The agent confirmed the property's $150,000 value by inspecting the premises and using a valuation formula.
Three months later, the couple met with the agent to discuss various insurance policies. At that time, the woman's husband said he believed the policy limits on the inherited property should be raised to at least $250,000 and asked the agent to do so. The agent responded that the property was not worth that much and that a $100,000 increase on a $150,000 property would look suspicious.
The couple agreed to get an assessment to support the desired increased value. The couple subsequently obtained a verbal assessment from a contractor but did not communicate it to the agent. Nor did the parties further discuss the notion of increasing coverage on the property.
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