Accidentally Paid Over 5 Years of Homeowners Insurance for My Old House
This is a bit embarrassing to admit, but I found myself in quite a predicament. After selling my old home in 2019 and relocating to a new house in a different state, I set up my mortgage and escrow through the same bank. Unfortunately, I never canceled the homeowners insurance policy for my old address.
While I should have been more diligent with my bills, I assumed that my higher payments were just due to an expensive auto insurance policy (covering 3 drivers and 2 vehicles). It wasn’t until I took a closer look that I discovered the policy still had my old address and that I’d been paying homeowners insurance for a property I no longer owned—for over $30,000!
Now I’m wondering if I have any legal grounds to request reimbursement for that entire period. Aside from my oversight, shouldn’t there be systems in place to prevent such oversights? Moving forward, I know I’ll need to be more attentive. I’ve already provided the bank with the closing documents from 2019, but I’m unsure what kind of resolution to expect. Any advice would be appreciated!
It’s definitely a tough situation, and it’s understandable to feel frustrated. While it might be difficult to get a full reimbursement for the 5+ years of payments, there may be a few avenues worth exploring:
Contact Your Insurance Company: Reach out to your homeowners insurance provider and explain your situation thoroughly. Provide detailed documentation showing that you sold the house and that the policy should have been canceled. Sometimes, companies have policies in place for these kinds of situations and may offer a partial refund or credit.
Bank’s Role: Since your new mortgage was secured through the same bank, they should have updated records for your insurance. It’s worthwhile to talk to them as well, especially if they were responsible for tracking the insurance related to the escrow account. If they failed to ensure the correct insurance policy was in place, they may share some responsibility.
Document Everything: Keep a record of all communications with both your insurance company and the bank. This documentation is crucial if you need to escalate or involve regulatory bodies.
Check State Regulations: Insurance regulations can vary widely by state. It may be helpful to look into any consumer protection laws in your state that pertain to insurance practices. Sometimes, there are guidelines regarding how long a policy should remain active after a home sale without renewal.
Consult with a Legal Professional: If you feel that both the bank and the insurance company have not handled the situation appropriately, consider seeking advice from a lawyer who specializes in consumer rights or insurance law. They can better assess your case and advise you on possible legal action.
While it’s a long shot to recover the entire amount, being proactive in communicating with both parties can help. Best of luck!