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Can a home insurance company increase premiums midterm?

Discussion in 'Homeowners, Fire, Casualty' started by Dan C, Apr 14, 2021.

  1. Dan C

    Dan C Law Topic Starter New Member

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    Hello,

    I refinanced my home last year with a new mortgage company and an appraisal waiver. Recently, my insurance company decided to retroactively increase my premiums because they erroneously thought that the square footage of my house increased by 25%. There have been no improvements to the building in a few years. I pointed their error out to them, they agreed to correct it, yet the retroactive (smaller) premium increase stayed on the policy as of the date of the erroneous increase. I thought that a policy was a contract, and they could not arbitrarily change premiums for the time when the policy is in effect if there were no changes to the property. Do I have a recourse?

    Thanks
     
  2. zddoodah

    zddoodah Well-Known Member

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    I don't really follow this in light of the following statement:

    Are you saying that your insurer agreed to correct it but did not correct it? Did you pay the additional premium? If so, why?

    The insurer cannot increase the premium mid-term unless it discovers that facts on which the premium was based are incorrect or have changed.

    Depends on how you answer my questions above.
     
  3. Dan C

    Dan C Law Topic Starter New Member

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    Per the agent, they entered the correct square footage into the system but got a different premium than what was agreed upon at the start of the policy. Based on the new quote, they decided to increase the premium retroactively as of that date.

    So if the agent made a mistake when the policy was issued, they can do it but if the information was correct at that time, they cannot? Is there an insurance-specific law to that effect or it is general contract law? Thanks.
     
  4. Zigner

    Zigner Well-Known Member

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    If your contract initially reflected the correct square footage, and nothing has changed, then I'd say they are stuck with it. Take your concerns higher up the chain.
     
  5. adjusterjack

    adjusterjack Super Moderator

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    Nobody is going to be able to properly answer your question without seeing the paperwork.

    Please upload the following:

    1 - Your declarations page from when the current policy was issued.
    2 - The endorsement page that increased the premium.
    3 - The endorsement page that rolled back the increase.

    When I look at those I should be able to explain what happened and what, if anything, should be corrected.
     
  6. Zigner

    Zigner Well-Known Member

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    @Dan C
    Redact your personal information (it goes without saying, but it can't hurt to say it).
     
  7. Dan C

    Dan C Law Topic Starter New Member

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    Will do as soon as the rollback goes into effect. Was planning to remove any PPI but thanks for the reminder.
     
  8. zddoodah

    zddoodah Well-Known Member

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    Concur.
     

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