BEWARE: Vacation Guard- Berkshire Claims Dept. Denies Coverage of Exchange Under Annual Timeshare Plus Policy

[Seaport104]

I have always purchased Vacation Guard Annual Timeshare Plus Policy since I own multiple timeshares with multiple brands since it covers maintenance and exchanges. From personal experience, they have previously paid claims for the maintenance fees AND exchange fees on 2 occasions over the years. So it came as a complete shock and surprise when the recent claim for reimbursement of maintenance and exchange fee due to a cancelled reservation due to ½ of my family getting Covid 2 days before departure, they have denied the claim on the basis that it was an Interval Exchange (email exchanges below). This is the case despite:

• Emailing the examiner an excerpt from the policy which clearly indicates exchanges fees and maintenance fees are covered. The whole basis of denying the claim is it was an exchange and therefore not covered.
• I asked for a supervisor, who agreed with the examiner and indicated “Interval International is not part of VacationGuard so it is not covered.” I mentioned that the policy itself indicated exchanges are covered and tried to point her to the relevant provisions. Her reply was “ I am not going to discuss policy questions with you. Once you exchanged with Interval it is not covered.” I asked to be escalated and her reply was she makes the final decision. I asked how do I dispute and she indicated I already did because I emailed back and she has denying it. According to her, she is the last and final course of appeal.

VacationGuard was no help. They just kept referring me to the claims department. So BEWARE.

 

[Seaport104]

Snippet of language in the policy docs itself.

 

[Sandy VDH]

Is it just II? Would an RCI exchange be covered?

Is it the exchange company that is the issue?

 

[Seaport104]

Is it just II? Would an RCI exchange be covered?

Is it the exchange company that is the issue?

According to the examiner and supervisor, it’s any exchange. I asked the same exact question myself. They told me it would have been reimbursed only if it was a direct booking with the timeshare company using my ownership week/points.

The blatant disregard for the written policy baffles me.

 

[altiste1]

An insurance policy is a contract between you and the insurer. If the insurer is refusing to honor the express terms of the policy, that's a breach of contract. I suspect the amount of your claim is relatively low so litigating this is probably not worth it. But if you have a lawyer friend who would be willing to write them a nasty letter laying out your case for breach of contract and demanding reimbursement, you might get a different response. The company's lawyers might have a different take on the matter than the examiner.

 

[Janann]

Your profile says you are in New Jersey. You can file a complaint with the state's Department of Banking and Insurance.

NJDOBI | How To Request Assistance - Consumer Inquiries and Complaints

 

[echino]

Correct, this is breach of contract. Once your claim has been denied and you exhausted all appeal possibilities, the only option remaining is litigation. If you decide not to proceed with litigation, at least make sure you file a complaint with BBB and write negative reviews on every platform you can find, so that others know this insurance company takes premiums but does not pay out legitimate claims.

 

[RX8]

You could always file a small claims suit which has a nominal filing fee. I would find it difficult to believe that you would lose with the contract language clearly stating exchange fees being covered. I have watched enough of Judge Judy to know what she is looking for.

 

[altiste1]

Lol

You could always file a small claims suit which has a nominal filing fee. I would find it difficult to believe that you would lose with the contract language clearly stating exchange fees being covered. I have watched enough of Judge Judy to know what she is looking for.

Lol - Judge Judy.

Certainly a small claims case is a possibility and is what I would consider a last resort. I would start with a demand letter from an attorney and reports to BBB and other consumer protection operations. If none of those actions gets the desired response, then file in small claims.

Note that while Judge Judy is a retired judge, on the show she is technically acting as an arbitrator. Arbitration awards are (generally) not subject to appeal, so she can play fast and loose with the law without any higher court review.

 

[Seaport104]

Thanks All! I am no lawyer and thanks for pointing out that it is indeed a breach of contract. I didn't realize I can file with the NJ Department of Banking and Insurance. I will definitely do that.

The amounts we are talking about is relatively low but it's the principle of it. How do you completely disregard what is black and white in the policy, where there is no ambiguity. I even specifically asked and made sure she was aware that I have the Annual Timeshare Plus contract and not other vacation/travel contracts that are catered towards hotel bookings etc. Her reply to me is "I have been here for many years and I know exactly what it is. I am not going to continue discussing it because my decision is final."

 

[dioxide45]

Did you receive a formal denial of the claim via mail or email? It should include instructions for appeal. I suspect you did that? Usually appeals go to someone else for review and not the initial processor that reviews the original claim.

 

[Seaport104]

Did you receive a formal denial of the claim via mail or email? It should include instructions for appeal. I suspect you did that? Usually appeals go to someone else for review and not the initial processor that reviews the original claim.

I did receive a formal denial. I included it with my initial posting. When I asked about an appeal, I was directed to the supervisor/manager who told me that I already disputed because of my email reply which I indicated why I thought it was covered. She indicated that she is the one that decides on disputes and she is effectively denying my appeal. She literally said, "It is my decision and that's where it stops." I subsequently called back and another agent directed me to her. When i mentioned I already spoke to her, they told me that's it's just the supervisor that I spoke to.

 

[Bunk]

@Seaport104

What is the definition of "Property Management Company" in the policy

 

[Seaport104]

@Seaport104

What is the definition of "Property Management Company" in the policy

Hi, @Bunk

 

[Bunk]

@Seaport104

So is it accurate to say that you are seeking to recover the maintenance you paid Bluegreen for the year in question plus the exchange fee you paid Interval.
And Vacation Guard is denying your claim by saying that they will only insure you if you book a Bluegreen unit and only if you book it through Bluegreen. So anytime you involve Interval or RCI, they will deny your claim

 

[tschwa2]

@Seaport104

So is it accurate to say that you are seeking to recover the maintenance you paid Bluegreen for the year in question plus the exchange fee you paid Interval.
And Vacation Guard is denying your claim by saying that they will only insure you if you book a Bluegreen unit and only if you book it through Bluegreen. So anytime you involve Interval or RCI, they will deny your claim

or are they reimbursing the MF's on the points but not the actual cost of the exchange?

 

[Arusso]

According to the examiner and supervisor, it’s any exchange. I asked the same exact question myself. They told me it would have been reimbursed only if it was a direct booking with the timeshare company using my ownership week/points.

The blatant disregard for the written policy baffles me.

As I see it, this is a matter of contract. Aren't we told that if it isn't written, parties to a contract have no basis to claim a benefit or exclusion that is not expressly stated? The contract should have a grievance process explained. If not, and the damages are less that the
legal ceiling in your state, take them to small claims court. Even better, offer to have the case heard by Judge Judy !

 

[Talent312]

Found a book available from Nolo.com --
"Everybody's Guide to Small Claims Court"

Caveat: There may be an arbitration and venue clause.
You need to read the policy closely for those little details.
.

 

[avk104]

You are probably not the only one has had this issue. Talking to a lawyer about class action suit might be interesting.

 

[Seaport104]

@Seaport104

So is it accurate to say that you are seeking to recover the maintenance you paid Bluegreen for the year in question plus the exchange fee you paid Interval.
And Vacation Guard is denying your claim by saying that they will only insure you if you book a Bluegreen unit and only if you book it through Bluegreen. So anytime you involve Interval or RCI, they will deny your claim

Yes, you are correct. My claim was for the maintenance I paid Bluegreen for the week I deposited in Intercal plus the exchange fee I incurred to book the week I couldn't use due to illness.
According to Vacation Guard, it is sold by them but all claims and underwriting is provided by Berkshire Hathaway Specialty Insurance so Berkshire Hathaway denied my claim on the basis that once I exchanged the week booked by Bluegreen to Interval, it was no longer covered and this was the case even if it was RCI. Both the examiner and the manager indicated it would have been covered if the reservation remained with Bluegreen. This was her reply after I emailed her the relevant excerpts of the policy.

It may be hard to read the screenshot but here's a straight copy and paste from the email

"Your policy can review reservations made with VacationGuard / Bluegreen Vacations.

Interval International is not part of VacationGuard and would not be covered under this policy. Once you transferred your reservation from BlueGreen to Interval, your coverage for the value booked is not covered. This has been confirmed by BlueGreen Vacations.

Please reach out to them for any questions or to see if the value of that reservation can be given back to Blue Green Vacations. Please note, Interval International does offer their own policies to protect your reservations. Please check with them to see if one was added to your reservation. "

 

[Seaport104]

or are they reimbursing the MF's on the points but not the actual cost of the exchange?

They denied my claim for MF's and the exchange. I could not understand it for the life of me. I even mentioned 5 years ago (same policy) I had a covered reason and I was reimbursed for both maintenance and exchange fees. I just could not believe how a manager who apparently is the final authority on disputes can just blatantly disregard the written policy and on top of it tell me " I am not going to sit here and have policy discussions with you. It is not covered and that's the final decision."

 

[Seaport104]

As I see it, this is a matter of contract. Aren't we told that if it isn't written, parties to a contract have no basis to claim a benefit or exclusion that is not expressly stated? The contract should have a grievance process explained. If not, and the damages are less that the
legal ceiling in your state, take them to small claims court. Even better, offer to have the case heard by Judge Judy !

I'll have dig deeper in the Berkshire Hathaway website and file the insurance complaint with NJ State.

If anyone wants to see the entire policy, I would be happy to share it via email. The policy does not outline the dispute process but I just noticed this so will dig deeper. According to the manager, I already disputed when I sent that email explaining why it should be covered but she said it does not and that's what she has decided.

 

[tschwa2]

Were you using a 2023 deposit for a 2023 exchange or was the deposit different than the exchange check in date? Do you remember (or can look up) if the one you did 5 years ago were the same use year or different? If they were different in both cases did you have insurance during both years?

Were you exchanging back into your home resort? If not this time were you when you last filed?

These are issues I have seen with other timeshare vacation insurance although if this was the reason for the denial then they should have just said that was the case vs exchanges aren't eligible.

Did you buy the annual protection through a link to your timeshare and if so which one?

 

[Bunk]

A few more questions :

First: Are these the definitions of Trip & Trip Cost in your policy: (This is from the MVC policy which is also underwritten by Berkshire Hathaway) :

“Trip” means travel away from home to a Destination outside the Insured’s City of residence; the purpose of the trip is business or pleasure; the trip does not exceed 180 consecutive days; the reservation is tracked, paid to and/or managed by the Property Management Company facilitating the enrollment for this plan; for annual plans, any trip taken during the Individual Coverage Term.

“Trip Cost” means the amounts paid to the Property Management Company and/or the Travel Arranger for the Trip. Trip Cost also includes pre-paid, non- refundable airfare and rental car charges booked independently of the Property Management Company and/or Travel Arranger.

Second: I thought Bluegreen is affiliated with RCI. Does Bluegreen also have a relationship with Interval, so that you have the option as a Bluegreen owner to deposit with either Interval or RCI?

Third: Did the claim(s) you previously made under this policy that were paid also involve an exchange of a Bluegreen week or posts into RCI or Interval for a unit that was independent of Bluegreen?

Finally: This definition from ARDA.org is helpful to your position
Exchange Company – The system that allows timeshare owners to trade the accommodations they own for comparable accommodations or travel-related services. Most resort companies are affiliated with an exchange company.
What Berkshire Hathaway is arguing deprives the insured of a major benefit of the TimeShare, which is the ability to rent outside of your Club

Timeshare Terminology | ARDA

www.arda.org

 

[Seaport104]

Yes, here are the definitions:

“Trip” means travel away from home to a Destination outside the Insured’s City of residence; the purpose of the trip is business or pleasure; the trip does not exceed 180 consecutive days; the reservation is tracked, paid to and/or managed by the Property Management Company facilitating the enrollment for this plan; for annual plans, any trip taken during the Individual Coverage Term.

“Trip Cost” means the amounts paid to the Property Management Company and/or the Travel Arranger for the Trip. Trip Cost also includes pre-paid, non- refundable airfare and rental car charges booked independently of the Property Management Company and/or Travel Arranger.
Any Maintenance Charges (1) accumulated or deposited from previous years prior to purchase of the Plan; or (2) borrowed from future use-years or use rights; are not covered, unless the Insured is enrolled in a Policy for each specific use-year or use rights term desired and premium has been received by the Company.

Second: I thought Bluegreen is affiliated with RCI. Does Bluegreen also have a relationship with Interval, so that you have the option as a Bluegreen owner to deposit with either Interval or RCI?

Bluegreen has a relationship with RCI and Interval for the resort I own so owners are given an option for which exchange company for deposit.

Third: Did the claim(s) you previously made under this policy that were paid also involve an exchange of a Bluegreen week or posts into RCI or Interval for a unit that was independent of Bluegreen?

For the previous claims, the recent one was an RCI exchange which I used a Bluegreen week deposited and a non-GB week that is independent. I have to dig the files but I recall the first time I made a claim it was actually an Interval that I used a Marriott for deposit. Which is why I am completely baffled. The whole reason why I bought this plan is to cover all my timeshares for the year since I use them frequently and almost always travel with family