Is this normal? Lauren Kerwin asked 5 months ago
Is this normal?

The day we received our renewal notice, we saw that our premium had increased by more than 65%, and 16 new “additional coverage options” appeared on page 2 of our declarations page. Overwhelmed and confused, we asked our agent if anything could be done to lower the premium, noting that the personal property limit seemed high. He responded that “a lot of the ancillary coverages, i.e., personal property, are included in the package and therefore it doesn’t save any money to lower them.” We accepted that explanation and moved on.

Several weeks later—right before renewal—the agent reached out and told us he had rolled back the dwelling limit but increased the Extended Replacement Cost (ERC), so our overall dwelling coverage was “basically the same.” He also said he raised the deductible and added two more endorsements.

He told us this would decrease our premium, which he explained was due entirely to inflation. While reviewing the documents, we didn’t notice that Coverage B (Other Structures) had been reduced and that Coverage C (Personal Property) had changed from 55% of Coverage A to 40%. Had this been disclosed, we would have noticed and objected.

We later learned that the original premium increase was partly due to a policy revision and new edition—essentially, a new package with coverages we never requested. Many of these added coverages don’t apply to our situation (for example, an HOA limit even though we aren’t part of one).

All of this came to light a few months later, after the loss of our home, when we discovered that Coverage A and ERC are not “basically the same,” and that several other deductions and changes had not been disclosed.

Over the past few months, I’ve tried to get clear answers about how our package, limits, and coverages were determined, communicated, and accepted—but I haven’t been successful. I’m wondering if I should be asking my questions in a different way, or if there’s something else I can do to obtain transparency.

1 Answers
Fawn Nekton Fawn Nekton Expert answered 4 weeks ago
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Hi Lauren,
This is an unfortunate situation, and you are right to be pursuing transparency. To answer your core question: No, this is not normal, and it is problematic.

An insurance agent has a duty to clearly inform you of any material changes to your coverage, especially those that reduce limits (such as Coverage B and Coverage C) or fundamentally alter your protection (such as changes to Coverage A or Extended Replacement Cost). The fact that these changes only came to light after a total loss is concerning.

You need to approach this issue on two fronts: the claim and the agent/agency.

The Claim: Challenging the Reduced Limits
Your immediate goal should be to argue that the claim should be settled based on the coverage limits in effect under your prior policy, since the reductions were never clearly disclosed to you or affirmatively accepted.
Actionable steps for the claim:

Request documentation of consent.

While it is not uncommon for agents to suggest coverage alterations to offset premium increases, best practice dictates that any coverage reductions or other material changes must be confirmed in writing (by email or signed form) by the insured.

Demand: Send a formal written request to both the claims adjuster and the agent asking for copies of any signed request, electronic authorization, or written confirmation in which you agreed to the specific changes—particularly the reduction in Coverage B (Other Structures) and Coverage C (Personal Property).

Rationale: If no such documentation exists, you have a strong basis to argue that your claim should be adjusted using the prior, higher policy limits.

Address potential misrepresentation.

The agent’s statement that Coverage A and Extended Replacement Cost were “basically the same,” when they are not, is an important detail. Document this communication, as it may support a claim of misrepresentation or inadequate disclosure regarding the policy changes.

The Agent and Agency: Obtaining Transparency

You mentioned that your prior attempts to get answers have not been successful. At this point, it may help to shift from general questions about how things happened to specific, document-based requests that require verifiable responses.
A More Effective Way to Ask Your Questions

Instead of asking:
“Why did this happen?” or
“How was this decided?”

Focus on questions such as:
“How did my personal property limit change?”
“Why were new endorsements added to my policy?”

You should also ask the agent to provide:
The signed form or email in which you authorized the reduction of Coverage C from 55% to 40% of Coverage A.
The renewal declaration page and all accompanying disclosure forms, coverage summaries, and policy documents that were sent to you prior to the renewal date.

Regarding the premium increase, it is reasonable to ask for greater clarity:Request a full, itemized, side-by-side comparison of the prior policy’s premium and the renewal policy’s premium, identifying all changes in base rates, endorsements, coverage limits, and applicable fees.

Escalation and Complaint Options
If you continue to receive incomplete answers or no documentation, you may need to escalate the matter.

Internal escalation:
Send your written requests to the claims adjuster, the agent, and the carrier’s consumer affairs department or ombudsman, if one exists. Requesting contact information for the agent’s regional manager and the claims supervisor can also help move the process forward and is often a necessary step before filing a regulatory complaint.

Formal complaint:
If you are unable to obtain the requested documentation or reach an acceptable resolution, you may file a complaint with the California Department of Insurance (CDI). The CDI regulates both insurance companies and agents and can investigate allegations of misrepresentation or failure to disclose material policy changes. Given the scope of the undisclosed reductions and their impact on your claim, filing a complaint would be reasonable.

I sincerely hope you are able to obtain clarity and a fair resolution. If you want, I can also tighten this further for posting, flag any phrases that could trigger defensive responses, or align it exactly with UP’s published AAE voice guidelines.

Kindly, Fawn