Premium Increased After Signing Policy

[eci313021]

After making our premium down payment and signing our new ho policy, a month later we got a notice in the mail indicating they were increasing our premium by $450 due to their incrasing the dwelling coverage (from $175K to $199K). Has anybody ever heard of this??

 

[xrac]

They must have determined that the amount requested was too low based upon replacement value after they did an inspection. However, $450 seems to be a lot of money for only $24,000 in additional coverage unless you are near the coast and maybe that isn't out of line. I know little about Florida rates.

 

[pghman]

I would also say that is too much money for such a little increase in replacement cost but I too know nothing about Florida costs. Are you sure that is the only reason that it was raised or was it one of several reasons?

 

[eci313021]

Hey Guys:

Thanks for responding about this so quickly. I know my initial info was vague, so here is more details:

Yes, we are on the Gulf Coast (about 1/2 mile from the Gulf of Mexico in the Fla. Panhandle), but the policy already increased substanially from last year (about $700) before this premium increase. The agent said that someone from the insurance company itself went by the property and somehow realized that the house should be insured for more than the original $175K (which is what it was last year). How they came up with the $199K figure is beyond me. My gripe on this is they threw this premium increase on me over a month after I went in the agent's office and signed the policy and paid the down payment...I actually had already got in the mail the payment schedule paperwork and the policy itself about three weeks before I got this "amended" crap. I mean, who's to say in, say, four months from now, they don't throw another $300 premium increase on me (and who's to stop them??)??
Thanks for listening to my frustration!!

 

[BTFuzz]

The only other thing I can think of is maybe the agent entered the wrong protection class when doing the app...for such a large increase this is the first thing that comes to mind??

What company are you placed with?

 

[FL P&C Broker]

You didn't sign the policy, you signed the application. Companies underwrite risks after the policy is written so it is subject to changing. I have seen some companies take 3 months to fully underwrite a property. Your agent should have submitted a replacement cost estimator to underwriting. Maybe he didn't submit one or didn't fill it out correctly. $450 is alot for for that small of a dwelling increase. Have you eve had a wind mitigation report done? If so, it could be possible it wasn't submitted to the new company.

 

[JCK818]

You agent has some explaining to do. Shop around your policy.

 

[eci313021]

I'm sure my agent didnt submit any kind of estimator...he basically was using the dwelling and contents figures from the previous policy.

My thing on this is I can barely afford a $2700 insurance premium...had I known it was actually going to be $3150, I'm sure I would have gotten a "second opinion". Do I have any kind of recourse on this? It just seems very, very shady and I'm sure the State of Florida Insurance Commission would be interested in hearing all the details.

Thanks again, everybody, for the much-needed input.

 

[briko3]

I can understand how you feel. It sounds like a bait and switch (even though it might be legitimate in this situation) I would call around town and see what's available elsewhere.

 

[FL P&C Broker]

Who is the policy with? Citizens?