Allstate Deducted Balance for Year After Mother Passed

[ouiareborg]

This is in Florida. While going through my mother's account today, I notice a deduction by Allstate for homeowners insurance. It was the same as 6 months of monthly payments. My mother passed recently. I have been making all payments(Including insurance), and was waiting to contact all parties after probate was finished. I literally made June's payment via e-check on 6/1. I left a message this afternoon, but haven't heard back. Can they simply take the balance of the policy year out of the bank like that? Not even sure how they found out, although I haven't been trying to hide it. No need to. Any help is appreciated.

 

[entrep1776]

This is in Florida. While going through my mother's account today, I notice a deduction by Allstate for homeowners insurance. It was the same as 6 months of monthly payments. My mother passed recently. I have been making all payments(Including insurance), and was waiting to contact all parties after probate was finished. I literally made June's payment via e-check on 6/1. I left a message this afternoon, but haven't heard back. Can they simply take the balance of the policy year out of the bank like that? Not even sure how they found out, although I haven't been trying to hide it. No need to. Any help is appreciated.

I'm not an agent. State Farm has my home and some auto. USAA also has some auto. Everytime I change policies State Farm refunds/adjusts. So if you think they overcharged you for 6 months, if you're right I would guess they would refund it. Through State Farm, my refunds come as printed checks. Hope this helps.

 

[VolAgent]

This is in Florida. While going through my mother's account today, I notice a deduction by Allstate for homeowners insurance. It was the same as 6 months of monthly payments. My mother passed recently. I have been making all payments(Including insurance), and was waiting to contact all parties after probate was finished. I literally made June's payment via e-check on 6/1. I left a message this afternoon, but haven't heard back. Can they simply take the balance of the policy year out of the bank like that? Not even sure how they found out, although I haven't been trying to hide it. No need to. Any help is appreciated.

I'm confused, what were you not trying to hide and what did they find out?

It sounds like they did a deduction from her account for the homeowner's insurance, so she was probably signed up for it. It also looks like you made a payment on the 1st for that policy as well? If so, it appears their system messed up and drafted even though there was no balance due on the policy at that time.

You definitely should keep insurance on the house until it is sold or deeded in someone's name. Her estate has an insurable interest on the house as long as it owns it. Once the title is transferred via whatever method, then that policy should be canceled and the new owner would get insurance.

 

[ouiareborg]

I'm confused, what were you not trying to hide and what did they find out?

It sounds like they did a deduction from her account for the homeowner's insurance, so she was probably signed up for it. It also looks like you made a payment on the 1st for that policy as well? If so, it appears their system messed up and drafted even though there was no balance due on the policy at that time.

You definitely should keep insurance on the house until it is sold or deeded in someone's name. Her estate has an insurable interest on the house as long as it owns it. Once the title is transferred via whatever method, then that policy should be canceled and the new owner would get insurance.[/QUOTE

This was posted with very little sleep.

My question is, is it legal for them to deduct the balance for the year because of her passing. She passed in April, and I have continued to make all insurance payments. Then they deducted the equivalent of 6 months from her checking account(Less than a week after having paid for June). Again, can they legally deduct the balance for the year?

I was going to keep everything as is until the house was sold. My location is currently NYC, and don't have the paperwork in front of me. Wanted to have as much info as possible before calling them back.

 

[VolAgent]

This was posted with very little sleep.

My question is, is it legal for them to deduct the balance for the year because of her passing. She passed in April, and I have continued to make all insurance payments. Then they deducted the equivalent of 6 months from her checking account(Less than a week after having paid for June). Again, can they legally deduct the balance for the year?

Sure, as long as that is what she signed up for, which it probably is.

Now, if you had made a full modal premium payment already, which appears to be semi-annual for your mother, then their system should not have deducted again. I suspect you simply made a monthly payment and since it was set for semi-annual payments, the system went ahead and processed a full modal premium, 6 months. They do owe you a refund for anything received in excess of the full policy premium, the full year. They may offer to apply it to the policy at renewal.

Two things I would say are most likely here.

1. You were unaware of her chosen payment method and paid for only one month when it was set for 6 months at a time.

2. The system didn't recognize your earlier payment for 6 months and went ahead and processed the scheduled payment.

My money is on 1. Stuff happens when we handle the affairs of a loved one, particularly if they did not leave detailed instructions on everything. Odds are, it is just one of those things and easily corrected.

 

[ouiareborg]

Again, I don't have the paperwork, but I had made 2 payments: May and June. These were set up as e bills. They were received and then paid. It wasn't just a case of finding a payment in her records and making a payment for the same.

 

[VolAgent]

Without the paperwork and access to their system, all I can do is give you my opinion.

Based upon your comments, I suspect you believe this was nefarious and intentional, perhaps even illegal.

I doubt it, I imagine it was all automated without a bit of human intervention. Unless you have told them or your agent is proactive about reading the obituaries, I doubt they even know she has passed.

Of course you are welcome to call them, of course you will be notifying them of her passing if they are not already aware. They may view the nature of the risk changing, which could mean a rate change or non-renewal.

 

[ouiareborg]

Nefarious and intentional? No. It was my hope to get as much info as possible while waiting for them to return my call.

I have had payment plans, that weren't for insurance, that worked a similar way. Monthly payments for a certain time, and then the balance after a certain amount of months. Also, because it was only a couple of days after the June payment. No matter.

 

[VolAgent]

Nefarious and intentional? No. It was my hope to get as much info as possible while waiting for them to return my call.

I have had payment plans, that weren't for insurance, that worked a similar way. Monthly payments for a certain time, and then the balance after a certain amount of months. Also, because it was only a couple of days after the June payment. No matter.

You asked earlier asked if it was legal, what else did you mean by that?

 

[RicFlairII]

Allstate will refund any overages within a month or so
of the overpay.