Egads! Our Homeowners Insurance Company Is Bankrupt: Any advice!
We just found out that our homeowners insurance, through Texas Select Lloyds, has closed it's doors for good and filed for bankruptcy. This happened only two days before we made our semi annual (for a six month period) premium payment of nearly $1,000, which they have collected. How could they accept our payment two days after they filed for bankruptcy? Also, since we paid our premium with a Visa card, we are thinking about disputing the charge with our card issuer, and let them collect, since in effect we paid for goods that we will never, ever receive.
We want to start coverage asap with another company, and a letter promises a refund appeal process beginning after August 24, 2006. But we don't want to wait a month to find new coverage and we can't wait for a refund to pay the new premium. We want to buy a policy with a real company right now, because we imagine that since Lloyds is a fairly large company (until 6/28/06 it was the sixth largest homeowners insurer in the state of Texas), there will be a surge in the demand for new policies statewide beginning in a few short weeks that might result in higher prices.
Has anyone experienced this sort of problem before? Do you think I have any recourse with my credit card company? How should I handle this matter? Thank you in advance for your replies.