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Home overvalued/Premiums over rated for 10 yrs

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What is the name of your state? Pennyslvania

I built my home in 1995 for $130,000 without the land. When the house was finished our insurance company called and did an assessment over the phone, at which time they determined that to rebuild the house would cost $270,000. We accepted that and trusted what they said. Premiums were deducted from my paycheck every two weeks, as my company has this type of plan.

Every year thereafter the insurance company has adjusted the total value based on inflation, however, after talking to others, we realized that it was valued way too high, and that we were paying a higher premium because of it. We then called the insurance company, and debated with them, explaining that our home would not cost what they were saying to rebuild it. They assured us time and time again, that the cost of builders in our area warranted the higher price. Even when we asked to speak with a manager, they would avoid giving us one, even to the extent of hanging up.

Every six months when we received our new policy, there was an increase in the value of our home, and each time we called to challenge it. Each time they insisted, then finally this last time the increase was up to $385,000 to rebuild. We called and told them and demanded to speak with a manager, and they said an underwriter would call back. When he did, he looked at the records since we had built, and admitted that there was a mistake from the very beginning. I told him I had complained many times, and that the insurance company should repay me the difference for what I overpaid each year. He said he would research it and figure out what was owed to us, since we had been complaining and he had the record of it on file. He assigned it to someone under him and said they would call us back. When she called us back she said that they would go back as far as 2002 and send us a check for $250. We explained to her that the underwriter had said that he would figure back to the beginning, and she replied that they couldn't do that because they could get audited. We told her that we would not accept $250 and we then called the Department of Insurance, and left numerous messages, that weren't returned. Finally, we got through to a number of a person who actually did call back, he listened and just said that he would send a complaint form.

How many other customers have they done this to, and how much money has this insurance company made with this sort of practice, which to me is a simple scheme? Is there a law which protects homeowners from this kind of thing. I really feel that this is an abuse, and should be something that needs to be regulated more strictly. How many customers never take notice and are paying higher premiums than they need to. This is robbery as far as I'm concerned.

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