Title: Mistakenly Paid Over 5 Years of Homeowners Insurance for My Old House
I’m feeling quite embarrassed about this situation. Back in 2019, I sold my old house and moved to a new home in a different state. Even though my new mortgage and escrow were arranged through the same bank, I never canceled the homeowners insurance policy linked to my previous address. I know I should have been more diligent about tracking my bills, but since everything was bundled—home, auto, and personal property—I just assumed that my higher payments were for my auto insurance (covering three drivers and two vehicles).
After taking a closer look, I discovered that the insurance policy still reflected my old address, and I’ve inadvertently been paying homeowners insurance for my previous home—over $30,000 in total!
Do I have any recourse to request reimbursement for this entire duration? Aside from my oversight, shouldn’t there be some safeguards to prevent this kind of error? I suppose the lesson here is to pay closer attention moving forward. I’ve already shared the closing documents from 2019 with the bank, but I’m uncertain about what kind of resolution I can realistically expect.
First off, I’m sorry to hear about your situation—it sounds really frustrating! Unfortunately, the scenario you described does raise some complicated legal and contractual issues. Here are a few points to consider:
Contractual Obligations: Typically, homeowners insurance policies require that the homeowner provides accurate information regarding their property. If the old policy was maintained in error, the insurance company may argue that you should have checked on it sooner. However, given that you were paying for a service you no longer needed, you might have a case.
Bank’s Responsibility: Since the same bank was handling both mortgages and escrow accounts, they may have an obligation to inform you if homeowner insurance for the old property was still active. If they failed to notify you of this ongoing payment, they could be partially accountable.
Documentation: Presenting the bank with your closing documents is a good step. You may also want to gather any communication about your original insurance policy and your new mortgage. Documents like emails or statements can be helpful in supporting your claim.
Ask for a Review: Your first step should be to contact your bank and the insurance company. Request a thorough review of your accounts and any policy updates. Be honest about your oversight but explain your situation calmly.
Consider Legal Advice: If the bank or insurance company isn’t responsive or cooperative, it might be worthwhile to consult a legal expert who specializes in insurance claims or consumer protection.
Future Precautions: Regardless of the outcome, this experience highlights the importance of regularly reviewing all your financial obligations. Setting reminders to check your insurance policies, especially after significant life changes, can help prevent similar situations in the future.
Though it’s uncertain what outcome you can expect, expressing your situation to both the bank and the insurance company and providing the necessary documentation gives you a better chance of a favorable resolution. Good luck!