Subject: Misplaced Homeowners Insurance Payments for My Previous House
I’m feeling a bit embarrassed about this situation. Back in 2019, I sold my old house and relocated to a new one in a different state. I used the same bank for my new mortgage and escrow, but I neglected to cancel the homeowners insurance for my old address. I realize I should have been more diligent in tracking my bills, but since everything is bundled (home, auto, personal property), I thought I was just dealing with a high auto insurance rate due to my three drivers and two vehicles.
After digging deeper, I discovered that the homeowners insurance policy still carried my old address, and I’ve ended up paying over $30K for coverage on a house I no longer own.
Now I’m wondering if I have any legal standing to request reimbursement for those payments. While I acknowledge my oversight, shouldn’t there be measures in place to catch such errors? My guess is that the lesson here is to stay more vigilant in the future. I’ve shared my 2019 closing documents with the bank, but I’m unsure about what kind of resolution I can realistically expect. Any advice would be appreciated!
First of all, I’m sorry to hear about the situation you’re dealing with—it sounds really frustrating. As for your question about reimbursement, there are a few factors to consider.
Contractual Obligations: Usually, when you sell a home and switch insurance, it’s your responsibility to cancel the old policy. Even though it was an oversight, insurance companies often operate on the premise that policyholders are aware of their coverage and premiums.
Bank’s Role: If your bank was managing both policies, they may have some duty to inform you about discrepancies. If they were aware of the continued billing for your old policy, that might strengthen your case. However, if they didn’t intervene, it might be tough to hold them liable.
Insurance Company Practices: You can reach out to your homeowners insurance company to discuss the situation. While there’s no guarantee they’ll reimburse you, if they find that the billing was an error on their part, they might offer some resolution.
Documentation: Be sure to document everything—emails, bills, the closing documents, and any communications with the bank and insurance company. This will be helpful regardless of the outcome.
Legal Advice: If you’re considering pursuing this further, consulting with a legal professional who specializes in insurance claims might provide you with guidance tailored to your situation.
Ultimately, while there’s certainly an argument to be made for reimbursement, the resolution will largely depend on the specifics of your policy and any oversight on the bank’s part. Going forward, it’s a good idea to regularly review all your insurance policies to avoid similar situations. Good luck!