topic Re: Insurance Advice-- Homeowners Problem in Community Chat

Insurance Advice-- Homeowners Problem

bonnielu — Wed, 23 Sep 2020 00:28:03 GMT

This week I have changed my homeowners insurance. Managing company is associated with our mortgage bank. They have a wide range of choices and they help us get better rates. So I called and was quoted better numbers.... cars... house.... umbrella. I signed up with the help of the agent. He did not notice that my original plan was escrowed, part of my monthly mortgage. The new plan charged my credit card with car, house and umbrella IN OTHER WORDS I PAID TWICE and have to wait for a refund from the cancelled insurance company. I am angry and upset. The agent told me to call my mortgage company to get it straight. My mortgage company told me to call my insurance company. Was on the phone from 9am to 3 off and on.

Has anyone had this happen and what was the outcome????

Re: Insurance Advice-- Homeowners Problem

sunshine45 — Wed, 23 Sep 2020 00:36:54 GMT

maybe i am not understanding this, but this doesnt sound wrong to me?

new insurance company billed you for your new insurance (not sure why they billed you in full though unless you set it up that way?). old insurance company was set up as part of your mortgage payment via an escrow account......now you need to cancel the old insurance and get back any money due back to you for cancelling.....or it will adjust your mortgage payment at the end of the year.

LOL i think i may have confused myself.

Re: Insurance Advice-- Homeowners Problem

Mz iMac — Wed, 23 Sep 2020 00:50:19 GMT

Call your CC & dispute the duplicate charges.

Re: Insurance Advice-- Homeowners Problem

ocgal3 — Wed, 23 Sep 2020 00:56:50 GMT

You definitely have to cancel all 3 of your previous insurance (car, umbrella, home). The new insurance doesn't do that for you--it's your responsibility. Make sure you have coverage before you cancel the old ones. I don't know how to get the amount of your insurance changed on the mortgage amount. I assume it's set up when you originally made the loan.

Re: Insurance Advice-- Homeowners Problem

Linmo — Wed, 23 Sep 2020 01:03:01 GMT

@bonnielu You need to call you old insurance company to cancel your coverage. Give them the effective date of the switch. They should notify your mortgage company to no longer include it on your mortgage payment and refund you for any payments after the switch date. If I were in your position, I would also call the mortgage company myself and have them note the information on the account. But I think the old insurer needs to notify them officially.

Re: Insurance Advice-- Homeowners Problem

bonnielu — Wed, 23 Sep 2020 01:25:51 GMT

Totally correct. I will call them in the morning. This is getting crazier by the minute. The main problem was I was dealing with a broker of sorts. He was supposed to find a better policy and then fix the situation. He did not puting me in a situation that I did not think I would be in.

Re: Insurance Advice-- Homeowners Problem

Lipstickdiva — Wed, 23 Sep 2020 16:11:52 GMT

We never had our insurance in with our mortgage and I never would. In fact many lenders won't even do that anymore. Real estate taxes yes but not insurance.

Anyhow, I can't imagine any new insurance company is going to sign you up and issue insurance without a payment.

Even when we added a new car to our existing policy, I had to pay the premium immediately for the newly added vehicle. When we switched all of our insurances from one company to another, I had to pay the premium the day they insured me and then I had to contact my former agent, cancel the policies with him and eventually I was issued a refund from the home office.

Re: Insurance Advice-- Homeowners Problem

sunshine45 — Wed, 23 Sep 2020 21:11:21 GMT

@Lipstickdiva wrote:
We never had our insurance in with our mortgage and I never would. In fact many lenders won't even do that anymore. Real estate taxes yes but not insurance.

Anyhow, I can't imagine any new insurance company is going to sign you up and issue insurance without a payment.

Even when we added a new car to our existing policy, I had to pay the premium immediately for the newly added vehicle. When we switched all of our insurances from one company to another, I had to pay the premium the day they insured me and then I had to contact my former agent, cancel the policies with him and eventually I was issued a refund from the home office.

@Lipstickdiva

maybe it depends on the state or the mortgage company?

in maryland you can have your homeowners insurance AND property taxes paid via your mortgage company.

in maryland, auto insurance does not work that way either. if i have an established insurance policy, i can add the car to my policy and they will bill me on my upcoming bill. i pay it monthly.

Re: Insurance Advice-- Homeowners Problem

teganslaw — Wed, 23 Sep 2020 21:40:27 GMT

@sunshine45 wrote:
@Lipstickdiva wrote:
We never had our insurance in with our mortgage and I never would. In fact many lenders won't even do that anymore. Real estate taxes yes but not insurance.

Anyhow, I can't imagine any new insurance company is going to sign you up and issue insurance without a payment.

Even when we added a new car to our existing policy, I had to pay the premium immediately for the newly added vehicle. When we switched all of our insurances from one company to another, I had to pay the premium the day they insured me and then I had to contact my former agent, cancel the policies with him and eventually I was issued a refund from the home office.

@Lipstickdiva

maybe it depends on the state or the mortgage company?
in maryland you can have your homeowners insurance AND property taxes paid via your mortgage company.

in maryland, auto insurance does not work that way either. if i have an established insurance policy, i can add the car to my policy and they will bill me on my upcoming bill. i pay it monthly.

Here in Indiana we have both our homeowners and property taxes paid through our morgage company. Depending on the state and mortage company, I don't know why someone wouldn't do that.