stormdodger
Junior Member
What is the name of your state? FL
I obtained a windstorm insurance policy on 6/21/07 through my agent. Coverage was written for the same amount as my homeowners insurance ($87,000), and the premium was $642.
On 7/11/07 the insurer sent an endorsement raising the coverage and premium by 32%. It stated that the additional premium ($196) was due by 9/4 or cancellation would follow. I told the agent I did not intend to pay the increase and to cancel the policy, signing a form effective 8/7/07. I asked the agent if I would get a prorata refund and he said "yes", although he now denies this.
My refund check came on 9/19 for $129, whereas a prorata refund after 47 days of coverage would have been $559. Apparently the insurer used a "short rate" windstorm cancellation because it occured between 6/1 and 11/1. So I was forced to either pay an additional $196 or lose $430 from the refund.
My questions are:
1. Doesn't an endorsement iniated by the insurer void any special cancellation provisions stated in the original agreed-upon policy contract?
2. If not, do I have a case against the agent for not informing me that a short rate would apply?
I obtained a windstorm insurance policy on 6/21/07 through my agent. Coverage was written for the same amount as my homeowners insurance ($87,000), and the premium was $642.
On 7/11/07 the insurer sent an endorsement raising the coverage and premium by 32%. It stated that the additional premium ($196) was due by 9/4 or cancellation would follow. I told the agent I did not intend to pay the increase and to cancel the policy, signing a form effective 8/7/07. I asked the agent if I would get a prorata refund and he said "yes", although he now denies this.
My refund check came on 9/19 for $129, whereas a prorata refund after 47 days of coverage would have been $559. Apparently the insurer used a "short rate" windstorm cancellation because it occured between 6/1 and 11/1. So I was forced to either pay an additional $196 or lose $430 from the refund.
My questions are:
1. Doesn't an endorsement iniated by the insurer void any special cancellation provisions stated in the original agreed-upon policy contract?
2. If not, do I have a case against the agent for not informing me that a short rate would apply?