Homeownes insurance, does agent owe me anything?

Question

My ins. policy lapsed in may (2006), I called the agent to quote me a new policy. He called me back, quoted me approx 250 per year for a landlord policy. He said my downpayment on the policy was approx 50 dollars. I came in to the agency that day, signed the policy, and gave them the check. My mortgage company nor myself never received anything, although my check was cashed. I called several times and was told everything was fine and they would send a dec page tto my mortgage company. My mortgage company placed forced insurance on my account. Which increased my payment. I sold the property July 31 2006 and I paid the mortgage company xtr$357 for homeowners ins from May 28 - July 31 PLUS I paid the insurance agent $50 for a total of $407. i WAS QUOTED just over $20 PER month for the policy from my agent so I should have paid about $60 for those 3 months. My mortgage company wont give my money back because my agent fails to prove a policy was issued and my agent refuses to refund me

The $50 would have covered me about 2.5 months , so it should have coverd 5-28 to 7-31. Its not my fault they didnt issue the policy properly. I think they owe me the $357 paid to mortgage company due to their error, because every dime of that money was unnecessary and essentially duplicate coverage at a rate more than 5 times higher. Obviously, they havent done anything at all to correct the situation and Ive called 3 more times since 7-31.

By the way, I have my p& c license, and this is the company I used to work for. My boyfriend OWNS the agency.I trusted them not to screw me. When I went in, I signed a new app, but didnt get anything cuz I was in a hurry. And my prior policy I had a year, it lapsed because I didnt renew it.

Answer 1

The agent may be guilty of 'errors and omissions' in the performance of his/her duties. You may be able to take him/her to small claims court (bring the cancelled check and any proof of the conversations you had).

He/she may be made to pay you the DIFFERENCE between the cost of the quoted policy and the forced policy for the period in question, plus the $50 deposit.

Answer 2

Couple of questions about this . . .

When you went in and wrote a check for $50, did you walk OUT with anything?? Like a binder? Or a QUOTE? Or a receipt that indicates a "new policy"? And did you sign a new application?

Here's why: If the old policy cancelled for non-payment, it is VERY likey that you would have still owed money on it. Also, if you had cancelled for nonpay previously, most agents will NOT accept a partial payment on a rewrite - they'll want payment in full. As you probably know, you can't WRITE a landlord policy for a couple months, the policy term is a full year, so if it were me, I'd ask for the whole year up front.

So I'm wondering if the money you paid, was earned premium on the old policy, and if you never signed a new application - so the agency never bound coverage, and there WAS no new policy.

It's just HIGHLY unlikely that a "landlord policy" would cost $250 a year. Especially if the property didn't have a tenant in it - then it's vacant, and would likely be about 5-6x that amount.

Answer 3

Write a REGISTERED letter to the insurance board. Request a return receipt.

Include all the information you have and a copy of the cleared check and any recollection of phone calls, to whom you spoke, dates.

Include copies of the bank insurance charges.

Send a copy of the letter to the insurance office, not necessary to register it.

You allowed this to go on too long from the time your check cleared the bank. The agent has failed to perform his duties and obligations.
You were neglectful also, so it may or may not get you a refund of the bank charges, but the agent will be reviewed, and rightfully so. I feel sure that you will get the $50 back.

One more example of incompetent people.

Always remember, write letters. Phone calls don't cut it.

Answer 4

if you never paid another premium to the first company, and a policy was never issued, the agent owes you $50. You could file a small claim for the larger amt you had to pay due to the negligence of the agent or the company, but prob not worth your time. Maybe not even for the 50...could complain to the state insurance oversight agency where you are, or threaten to do it.

Answer 5

If i were you, i'd be calling them, going to the office, and demanding to speak with someone in the billing department. Sometimes, insurance pays their part, and the doctors office still is owed charges insurance didn't cover. That happens quite often. Usually as long as you are given an explanation of why you owe them, they are usually willing to work out payment plans if you dont have that money up front. Plus, doctors offices usually send you a bill, stating what insurance covers, what they've received, and the costs of services rendered. The insurance company usually sends one too..

Answer 6

All of the above posters have valid points. Here's one more. If a policy was issued and you can get a copy of it and provide it to your mortgage company, you may get your money back.

If you have something - a binder, a receipt or anything showing the company that your new policy was to be written thru, you can call that company and talk to their cust. service dept. and see if you can get help there. You can also talk to the Dept. of Ins in your state.

Answer 7

If your agent did not sign you up and just cashed the check, then it sounds like you are owed the money back. Was a contract signed at that time? This is important as it could say that money was not refundable. Good Luck.