Can paid policy premium be increased midterm jmont61750 asked 1 year ago
Can paid policy premium be increased midterm

I purchased a home in November, 2021. I spoke at great length and on at least 3 different phone calls with my insurance agent going over all the details of the property. The agent viewed the mls listing of the home, pulled county records and Zillow during our conversations.

All of these sources contain completely accurate data for the home. All of the sources used had accurate photos of the home. The policy and coverages as originally written were correct.

The yearly premium was paid in full at closing. I got a notice from my mortgage lender that my monthly payments would be increasing due to a shortage in escrow. I logged into my account and found an additional payment of almost $800 was paid to Allstate in February (my premium was a little over $1800 yearly).

I contacted Allstate with my concerns, and the 2 reasons given were the home is a tri level verses a bi level, and the cost of replacement is higher than what they wrote the policy for.

My questions: can my paid premiums be increased midterm with no notice or authorization?

1 Answers
Karl Susman Karl Susman Expert answered 1 year ago

Hi –

Sorry you have to deal with this right after purchasing a new home. Let me address both of your questions. First, most homeowners insurance contracts include provisions that permit changes to be made during the policy period if they are material. The number of stories would likely fall into this category, as I’m sure if there were a loss you’d want to be sure they rebuild the home to the same characteristics. It seems to me that the agent who acquired the policy for you did not utilize any tools that you are referencing to get the correct information on the home. While I cannot know this for certain, did you have a conversation with the agent about where they can find home characteristics to assist them in writing the new insurance policy?

Let me know if I can do anything else to assist you.

Karl Susman