Homeowners Insurance Premium Payment Question/Concern

[lexi_aldaine]

The broker I used made payment to insurance company before I made payment to anyone. Now, the broker is requesting payment from me to them. Policy is in force and I have not made payment yet.

Is this normal?

What happens if payment is not made to the broker?

Thanks much,

 

[Markthebroker]

When a policy needs payment immediately (agency bill) I sometimes will cover the payment myself, and wait to get paid by the insured. I continue to do it, albeit as rarely as possible, because I just want to help my clients. I've been screwed on this before, and I'll probably be screwed again.

 

[fed up]

No broker or agent should ever make a premium payment for a customer. Was your premium late? Was the policy about to terminate? I wold have a very serious discussion with the brokerage so that this never happens again

 

[Markthebroker]

No broker or agent should ever make a premium payment for a customer. Was your premium late? Was the policy about to terminate? I wold have a very serious discussion with the brokerage so that this never happens again

When it's agency bill, that means the agency is billed directly, and then they need to collect from the insured. I am guessing that is the situation here.

 

[lexi_aldaine]

Markthebroker - I believe you are correct.

When you have been "screwed" in the past, what action/s can/have you taken?

What happens with the policy?

 

[Markthebroker]

Lexi, correct me if I am mistaken, but it sounds like you led the agent to believe you wanted the policy, and you are now trying to figure out how to not pay him, if you can get away with it, and what recourse he has. Correct?

 

[adjusterjack]

What happens if payment is not made to the broker?

Two things come to mind.

1 - He can order the policy cancelled for non-payment. Like a premium finance company, he loaned you the money to pay for the policy.

2 - He can let the policy stay in force and sue you for the premium. With a judgment he can have your pay garnished and your bank account levied. The judgment becomes a public record that lands on your credit report and trashes your score. Post judgment interest drives the amount of the debt upward and if he sends the account to a collection agency, they will tack on attorney fees.

In short, not paying the broker could turn in to quite a financial nightmare for you.