Join Early Retirement Today
Thread Tools Display Modes
Homeowner Insurance overcharged on premium
Old 11-13-2010, 11:03 AM   #1
Recycles dryer sheets
Bram's Avatar
Join Date: Dec 2006
Posts: 227
Homeowner Insurance overcharged on premium

I am considering filing a complaint to the Ohio Dept of Insurance. I want to be objective so am soliciting opinions, as to whether that would be appropriate.

Having rec'd a post card from my agent that said "We need to talk about your castle insurance", I gave him a call. He wanted me to come in to the office, I said, it's more convenient to discuss this via the phone. So he pulls up the Home Owners policy, quickly looks it over & says "Everything seems to be in order." My son had told me of getting a substantial reduction in his HO insurance (same company) when they ran his credit rating & found it to be excellent. So, since my agent didn't mention this after his "review", I posed this as a possibility for our HO insurance. He responded like "if I use enough big words she'll think I'm a genius", a lot of jargon, smoke & mirrors, & didn't seem inclined to wanna go there (no pro/con offered). I persisted & he agreed to check further.

His assistant calls me back, says they can save me ~$110/yr by switching the policy from the Mutual Co to the Fire Ins. Co and that it will provide more/better coverage because this would be a "home replacement" policy. She said that when they ran this new policy they found that we were erroneously in a Fire Protection Class of 10 instead of the lower cost class 5. I asked her how that change of protection class would affect the "old" policy cost. She hadn't run the numbers to make a comparison. I asked to speak to the Agent. He again gives me gobblety-gook answers/info. I confronted him with the fact that I found him to be evasive & not forthcoming with answers/info & how was it that we were in the WRONG protection class? Oh, mea culpa! & he didn't know the root of the mistake. I pushed ... again... to get comparative data. The premium was due in a week... he knew that. Assistant calls 2 days after premium due date & says that with the correct Protection class (5) the old policy would be $168 less per year.

While he was dithering for over a week, I researched other options & have found that USAA (thanks ER forum) will meet our needs for HO AND vehicle insurance for a total savings of $374/yr. So I told his ass't thanks, but we're changing insurance companies.

We've been paying this inflated/erroneous price for at least 2 year, probably longer. I should have noticed that it had changed, but I had just figured that insurance costs had gone higher & didn't study the policy for errors or changes.

So, my question boils down to.... We didn't change our Protection Class & he "doesn't know how or why it was in error". We over-paid. Is this something that the Insurance Commission should know about? I recognize that my objectivity might be clouded by my high level of irritation with the Agent's poor customer service and use of "used car salesman"-jargon/smoke/mirrors tactics.

Every step of the journey is the journey.
Bram is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
Health insurance premium increase Zoocat Health and Early Retirement 12 08-09-2009 08:26 AM
NJ: Health insurance premium up by 15% walkinwood Health and Early Retirement 0 04-02-2009 03:56 PM
20% insurance premium increase teejayevans Health and Early Retirement 43 01-25-2009 12:01 PM

» Quick Links

All times are GMT -6. The time now is 11:44 AM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2024, vBulletin Solutions, Inc.