Insurance bill I Don't Owe In Collection

fayemarieApril 5, 2010

I'm hoping someone here can give me some advice . I built a new home

and prior to the final closing , I needed to get my homeowner's insurance .

The day before closing the agent called to say that the premium was going

to be 2000.00 per year . I felt this was quite excessive . The agent said it was

based on a replacement value of 800,000.00 . I explained that it only cost

300 ,000.00 to build the house but they said that there is a formula they go

by and I had to buy that much . They said they checked with several companies and they were all the same . It didn't sound right but closing was the following day . So the next morning , I went in a gave them a check for the full years premium and got a binder and then went to closing .

At closing my banker saw the binder and commented that he felt we had

way overpaid and that we should shop around more . I told him what they said about having to get 800,000.00 for replacement and he said that was

completely untrue and that the bank only required enough to cover the loan .

The next day was a Saturday and we did some checking and found out we

could get 550,000.00 for 900.00 from another company so we went ahead

and purchased it . We then called the agent and told them to cancel the policy

immediately . The actual agent was'nt in because it was a Saturday but the

receptionist took a message . The following Wed . the agent called and was

extremely rude because they had discovered that we had stopped payment

on the 2k check . We explained that we did not want to have to wait for them to refund our money considering we canceled within 24 hrs . She got very nasty so I just hung up . Now 3 months later we get a collection letter for

385.00 on a policy we never received or even got a bill for . Is there anything

we can do to get this removed ? Is there anywhere we can go to file a

complaint ? Thanks for any advice you can give .

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Contact the company rather than the agent. If they will not help each state has an insurance department where complaints can be filed.

    Bookmark   April 5, 2010 at 9:40PM
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You need to check and see what you signed- the policy might have a nonrefundable fee attached, depending on the company. This is most common in surplus lines insurance, who do write higher value policies.

Also, CYA- call your bank or check online and make sure they have the right carrier listed, and they know that any cancellation from the other company was what you switched from, not what you're trying to switch to. It shouldn't take long, but could save you headaches in the long run. A note that says "Borrower confirmed they switched to ABC Insurance from XYZ Insurance immediately after closing" never hurt anyone.

    Bookmark   April 6, 2010 at 2:54PM
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