Consumers who bought homeowners insurance from Travelers Property Casualty Corp. are allegedly routinely sold excess coverage because the company misstates its risk estimates for physical damage, according to a class action suit filed in a New Jersey federal court.

Spotted on Radar: Instead of basing a policy’s dwelling liability limit solely on the risk of physical damage to the home, Travelers allegedly inflates that limit with the estimated cost of debris-removal expense that may be incurred, and the company does not inform the policyholder of that fact, according to the suit.

Travelers policies already provide debris-removal expense coverage sufficient for a policyholder’s needs, without increasing the liability limit to account for such expenses and without charging an additional premium, the suit claimed.

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