Homeowners Insurance

[rememberme]

I purchased a condo in 1993. The mortgage company also had an insurance subsidiary that would provide the homeowners insurance. At closing I signed for the insurance the agent said I was required to carry. In June of this year, I went to my own agent in hopes of getting a better policy. The agent told me that the coding on my policy indicated it was for a home, not a condo. Sure enough, since 1993, I have been paying $ 1057 when I shold have been paying about $300. I asked for a remittal of the overpayment with interest and was refused on the basis of the policy being too old. Is that legal?

 

[ALawyer]

While the statute of limitations probably has run on some years' payments, it has not run on all years. You could sue on the more recent years.

There is no doubt you could have discovered the matter yourself years ago, and in some states your failure to act sooner may be a bar to action. BUT unless yours was an isolated example, this may have been a pattern of conduct designed to defraud -- particularly as the insurer and lender are affiliated -- and if so the last thing the insurer wants to worry about is a class action lawsuit on behalf of all condo owners who bought policies on a house. Ditto the agent.

You maight tell them that unless they pay back all the excess you will assume that there was bad faith involved and you will take them to court on behalf of yourself and others similarly situated. If you get back half, you're ahead of the game. If they stonewall you, report this to the State Insurance Department and consult a lawyer who handles bad faith claims.

 

[rememberme]

Thanks for your help. I was able to file a complaint online with the Florida Insurance Commission. In three weeks I received a full refund of all overpayments. The complaint was also sent to another department of the Agency for further investigation.