Refunds advice...wrong move

[whosearmy]

At the closing, we paid $228 for a flood insurance policy that we were assuming from the seller for the remainder of the term. The seller had already paid the premium and our payment was a duplicate. Well, after rewriting the policy under me, Allstate found that underwriting had made a huge error and the policy was actually closer to $1400/year. Well, when we received the full amount of the original premium we paid at closing, our real estate agent, the title company and the seller all told us (the seller even had the nerve to come by the house) that we owed that money to the seller. Well, come to find out from Allstate after we wrote the check over to the seller that the refund belonged to us. Apparently, when Allstate re-rated the policy, they started from scratch and billed us for the entire amount again. So, the refund was intended to reimburse us for the original payment since we paid the full amount again.

After conversations with our agent, Allstate and the title company...all of whom have either spoken to the seller or left messages for him, the seller refuses to pay us back the money.

We don't know what to do. We only turned the check over to him because the title company, agents and seller all bugged us to get it to him. Now, that we've paid way more than we owe for our flood insurance policy and know that the money belonged to us, it doesn't seem like this error should be our responsibility to collect or pay for. What can we do? Who is responsible?

[HomeGuru]

Originally Posted by whosearmy

At the closing, we paid $228 for a flood insurance policy that we were assuming from the seller for the remainder of the term. The seller had already paid the premium and our payment was a duplicate. Well, after rewriting the policy under me, Allstate found that underwriting had made a huge error and the policy was actually closer to $1400/year. Well, when we received the full amount of the original premium we paid at closing, our real estate agent, the title company and the seller all told us (the seller even had the nerve to come by the house) that we owed that money to the seller. Well, come to find out from Allstate after we wrote the check over to the seller that the refund belonged to us. Apparently, when Allstate re-rated the policy, they started from scratch and billed us for the entire amount again. So, the refund was intended to reimburse us for the original payment since we paid the full amount again.

After conversations with our agent, Allstate and the title company...all of whom have either spoken to the seller or left messages for him, the seller refuses to pay us back the money.

We don't know what to do. We only turned the check over to him because the title company, agents and seller all bugged us to get it to him. Now, that we've paid way more than we owe for our flood insurance policy and know that the money belonged to us, it doesn't seem like this error should be our responsibility to collect or pay for. What can we do? Who is responsible?

**A: sue the Seller in small claims court.

[JETX]

Originally Posted by whosearmy

policy was actually closer to $1400/year.

I think you are confusing your homeowners insurance with flood insurance... unless you live in New Orleans.
I have NEVER heard of a $1400 Federal Flood premium. Most of the ones I have seen are less than $500.... sometimes as little as $200 per year. I suggest you check your facts.

"THE AVERAGE PREMIUM FOR NATIONAL FLOOD INSURANCE IS $370 A YEAR"
[url]http://www.pueblo.gsa.gov/cic_text/housing/natl-flood/insurance.htm[/url]

[url]http://www.floodsmart.gov/floodsmart/pages/premiumest.jsp[/url]

[Ohiogal]

Originally Posted by JETX

I think you are confusing your homeowners insurance with flood insurance... unless you live in New Orleans.
I have NEVER heard of a $1400 Federal Flood premium. Most of the ones I have seen are less than $500.... sometimes as little as $200 per year. I suggest you check your facts.

"THE AVERAGE PREMIUM FOR NATIONAL FLOOD INSURANCE IS $370 A YEAR"
[url]http://www.pueblo.gsa.gov/cic_text/housing/natl-flood/insurance.htm[/url]

[url]http://www.floodsmart.gov/floodsmart/pages/premiumest.jsp[/url]

I have ... I was quoted a policy for over $500 for an apartment. It is possible JETX.

[HomeGuru]

[quote=JETX]I think you are confusing your homeowners insurance with flood insurance... unless you live in New Orleans.
I have NEVER heard of a $1400 Federal Flood premium. Most of the ones I have seen are less than $500.... sometimes as little as $200 per year. I suggest you check your facts.

**A: I know clients that pay $1200-$1400/year.

[JETX]

Originally Posted by Ohiogal

I have ... I was quoted a policy for over $500 for an apartment. It is possible JETX.

Sorry, but I think you are confusing renter insurance with the NFIP (National Flood Insurance Program). They are NOT the same thing.

"The average flood insurance premium in 2000 was $353 a year, with policies starting at $112 per year. The average amount of flood insurance purchased in 2000 was $124,089. Policies are available in three forms: "Dwelling" (most homes); "General Property" (apartments and businesses); and "Residential Condominium Building Association Policy" (condominiums). All have limits on coverage."
[url]http://info.insure.com/home/flood/[/url]

[Ohiogal]

Originally Posted by JETX

Sorry, but I think you are confusing renter insurance with the NFIP (National Flood Insurance Program). They are NOT the same thing.

"The average flood insurance premium in 2000 was $353 a year, with policies starting at $112 per year. The average amount of flood insurance purchased in 2000 was $124,089. Policies are available in three forms: "Dwelling" (most homes); "General Property" (apartments and businesses); and "Residential Condominium Building Association Policy" (condominiums). All have limits on coverage."
[url]http://info.insure.com/home/flood/[/url]

Actually no I was not confusing them. I paid $450 a year at the time for renter's insurance. The RIDER for flood insurance was over $500 a year which made absolutely NO sense to me but that is the quote I received. I am NOT confusing them. I turned down the flood insurance and the day my policy came and specified no flood coverage, my apartment ended up under 3 feet of water.

[HomeGuru]

Originally Posted by Ohiogal

Actually no I was not confusing them. I paid $450 a year at the time for renter's insurance. The RIDER for flood insurance was over $500 a year which made absolutely NO sense to me but that is the quote I received. I am NOT confusing them. I turned down the flood insurance and the day my policy came and specified no flood coverage, my apartment ended up under 3 feet of water.

**A: ok, so you had no insurance.