Sorry to necro this but I just thought I would post an update to serve as lesson learned
I started using electrum in late 2014/early 2015. I was drawn to it because I could save space on the blockchain download over the main core wallet.
What I did right
-Wrote down the seed when it prompted me at wallet creation
-kept backups of my wallet
-wrote the password down
However, I should have known better to trust an application like this with so much money (1.7btc). From now on I will be using offline generated keys to hold my savings.
I still wish that I could get refunded for this bug, however I understand that if it might have been out of the developers control. In his emails with me it did not qualify as a big enough issue to him to warrant a refund. Apparently my password check summed to something that caused the client to act strange? The big issue I have here is - why did the seed not work? I wrote it down and it just generated a new wallet. It seems like there was some issue with my created wallet from the start.
Anyway just figured if someone can learn anything from this that its not to trust anything but an offline key