Can a home insurance company increase the amount of insurance on your house without your request?

Of course when the amount of insurance in increased, the insurance premium also increases. I have only $125,000 left on the mortgage and insurance company has increased the insurance to cover a value of $305,000. Real estate value of the home is $450,000. My credit rating is excellent and I have not had any insurance claims

Yes. Part of the policy condition is that you insure the home to either 80%, 90%, or 100% of the replacement value, on a standard HO3 Homeowners form. So, if you want the type of policy that is NOT a replacement policy, you'll have to get a whole different kind of policy.

Of course, a FLAT RATE policy costs about ten times as much as a standard policy.

Real estate value, or market value, has NOTHING to do with the cost to rebuild. If the house burns to the ground, the insurance company does NOT have an option to "buy" it from you for the face amount - they are required to rebuild.

So, you can do it your way, and pay a way, way, way lot of money for a small amount of coverage, or you can do it the insurance company's way, and insure to full replacement value, for less money.

Or, what most people like you prefer to do, is just get a personal loan for the balance of the mortgage, so you can pay off the mortgage, and not insure the house at all.

DO THE MATH. Assuming you're in a 28% tax bracket, you're paying the mortgage company $1 so you can save $.28 on taxes . . . so if you pay off the mortgage, you're NOT saving the $.28, but NOT paying the $1 . .. so you have $.72 MORE than you did with a mortgage. http://answers.yahoo.com/question/accuse_write?qid=20070125130602AAy47Zz&kid=Ec19WWe4U2RZCU5xwFLAda4tVLz4lY8Y4mGjrVXduZIrKyNQpnuf&s=comm&date=2007-01-29+20%3A00%3A02&.crumb=

You should be glad that they have done this for you. You should have your property insured for its full value.

The $125,000 is what the insurance will pay the bank in the event that something happen. With the change the insurance will still pay the bank and the balance shall be paid to you. This $180,000 would let you rebuild the house without having to start over again.

I know the payments are hard to take, but the cost of rent is worse.

Mbrcatz17 is so right! HO-3 polices aren't to pay off your mortgage, but to rebuild your home and this is why companies increase the coverage. Sometimes, however, it can be increased way too much and it can be negotiated. This is why you need an agent. CALL YOUR AGENT!

Yes, especially if your policy is "replacement value" since the cost to replace your home has gone up along with both the overall housing market and the cost of raw materials/labor to rebuild. Don't forget your assets in the house (i.e. furniture, clothing valuebles - these have value in your policy as well)

Yes, you may owe only $125K on the house, but what would happen if your home was destroyed (by a covered loss)? Would you only want to pay off the mortgage? I think not, I would guess that you would want to rebuild and re-stock furniture/belongings.

Since your 'real-esate' value is so far above your insured value, you may actually be under insured!

Home insurance is not based on what is left on your mortgage. They go on how much it would cost to replace your home in todays market. Most companies have a 5-10% inflation where it will automatically increase to that amount without your concent. If you have $X left on your mortgage, you can request insurance for that amount alone, but there's no guaranteed replacement on the home and they will envoke and co-insurance pentalty. I don't know why you wouldn't want to insurance your house to full value. It's best to call your company and ask for options. Try a higher deductible if the premium is too high for you :)

Yes, they can. If they inspect your property and find you are under insured they have the right to increase your limit to the true replacement cost of the building.

Also, many companies build in an inflation guard. So, when you renew you will see a higher premium, but this is because the coverage has increased, as well.

btw, there is little correlation between market value and replacement cost.

This is probably to cover you in case of a loss (sounds prudent to me)

If you were to have a fire, you would want to have the house rebuilt and it would cost more than the $125K mortgage. Usually you insure the value of the house (minus the land value) and 2/3 of the value for contents.

You can always increase the deductible if your concern is lower premiums but in the event of a fire or break-in you would be responsible to pay the first (example: $500 instead of the first $250

Home Values are increasing (along with the salaries of builders or repairs) so the higher cost may be prudent. Possibly the insurance co. should have given you advanced notice but on the other side of the coin if you had a fire and it would cost $450K to rebuild and found out you were only going to receive $350K you'd probably be more upset with your insurer.

Shop around but also compare each companies level of service or if anyone has ever had a problem with a claim. Sometimes that's more imporatnt then the added cost

It is called inflation guard. They increase the coverage of your dwelling every year to keep up with rising labor and materials cost. It has nothing to do with claims or credit.

Also insurance is used to rebuild your home from the ground up, to indemnify you in case of a loss. It will not pay off your mortgage, nor does have to be anywhere close to what the market value of the home is.

Yes, it can be done.

If you live in the state of Florida the insurance companies can increase without your OK and cancel you for no reason. If someone wants to sell their house they will run into a real problem because of the insurance rates right now. The insurance companies are rich and getting richer while people are losing their homes because of this. I personally don't own a home but my daughter has been trying to sell her house for 4 months now and dropped the price twice and still no takers..in Feb, if the house isn't sold she has to start paying vacant house insurance that cost 3x the amount of regular insurance. My sister and her husband's house insurance jumped $4000 and they have only had one claim in 30 yrs. Its real bad.

How much is your home insurance premium in Toronto east neighborhood?

Please give me an idea of your home insurance premiums if you live in a neighborhood in Toronto East. For example, I was quoted $1,046/year by a company for a semi-detached home. I'd like to do a really loose comparison.

thats too expensive. forget about land, think about how much it cost to rebuild your house probably $200k and insured to that amount. don't ask for quotation, go to allstate and tell them what you want.

What kind of lawyer do I need that specializes home insurance policies?

My home got flooded. Insurance denied the claim but I believe I still have a case. What kind of lawyer would I need that specializes in home insurance policies to see if I really do have a case?

You need to be much more specific because water damage may be covered in certain circumstances but flood damage is not covered in any circumstance.

In the USA no homeowners policy will cover damage due to a flood. Flood damage is specifically excluded. Coverage for flood would have to be purchased through the National Flood Insurance Program (NFIP).

Well, you need a civil lawyer.

If the water was from OUTSIDE the house, coming in, that's FLOOD. NO homeowners policy covers flood.

If your house was vacant or unoccupied, and the water came from a burst pipe inside the house because you shut the heat off, THAT is ALSO specifically excluded.

I have no idea what you think your case is, but the denial from the insurance company should have the reason clearly spelled out in it - AND, it should reference the policy section. Having an excuse WHY your house was vacant or unoccupied, is NOT a case.

But any civil attorney should be able to give you a one hour free consult, and tell you if you REALLY have a case. Here's a good hint - if they aren't willing to take it on a no-win/no-fee basis, you do NOT have a good case.

Just an FYI, if you can afford the repairs do them yourself. A water damage claim will put a mark on your record for a long time to come. Not only will some carriers refuse to carry your policy, but the current carrier you're with will surely increase your rates and you'll end up paying more in increased rates over time than the repairs were.

My experience is home insurance should be carried with a very high deductible and used in major situations you can't otherwise afford. Lesser claims will just increase your rate (or rather keep it from decreasing) and cost you more in the long run. ESPECIALLY water damage claims.

A pipe burst is not a flood. Why did they deny your claim. You might want to post that info to get more help.

Call the Department of Insurance in your state. The link below will give you the phone number to the Department of Insurance in your state. You can file a complaint with them.

No attorney is needed, just file the complaint. They will investigate and tell you if your right or wrong.

Try your state insurance commissioner first. Your "case" depends on the source of the flooding. Homeowner's insurance does not cover flood damage due to natural events. You need federal flood insurance for that. If the "flood" was due to a plumbing problem, homeowner's insurance should cover it.

Contact your local bar association for a referral to attorneys who specialize in insurance coverage disputes.

But, I'm curious as to why you believe you have a valid case. Insurance is a standard contract. Is the type of loss explicitly excluded from your policy?

How are home insurance rates in hawaii?

I'd like to buy close to the water (would be impacted by hurricanes). FLA is ridiculous now-cant get insurance near the water for entire home value. Thought Hwi might be better since they dont get hit so much.

Insurance here is pretty high, but then again, everything is. You HAVE to buy hurricane insurance (can't think of a number off the top of my head).

The islands are so small that it doesn't matter where you are, the hurricanes will affect you no matter what. We've only had 2 hit as hurricanes since the 60's.

Well, they have the whole volcano thing going on. Plus, Hawaii has incredibly high property values, so you're looking at much higher limits.

Bottom line, although the actual RATE might be lower, the DOLLAR amount is likely to be almost as high, and the houses are going to cost you WAY more. Just check out the values, at www.realtor.com.

How much should I expect to spend on home insurance?

I am planning a home purchase and I want to budget my monthly payment. In the area where I live, I expect to pay approx 650K for a 3bed, 2 bath home. When I calculate my monthly payment, I want to know the Home Insurance component as well as Property Tax for Fremont, CA if possible.

about 1,800 yearly. have it impounded with escro and it wont hurt a bit. i pay 1,600. 530k home in hayward. congrats on the purchase. state farm was a good bet.

call 3 insurance agents. If you use the same insurance co you have car insur with, you might get a discount - I did

Who pays for the home insurance when you are owner financing it? Also in the state of Texas what insurance c?

Who pays for the home insurance when you are owner financing it? The seller or the buyer? Also in the state of Texas what insurance companies provide mobile home insurance?

Who's name is on the title, at the registrar of deeds? Until the title is passed to the buyer, the house is just a RENTAL, and needs to be insured that way. If this is a land contract, the SELLER should keep the policy to 1. make sure it gets paid and 2. make sure they have coverage in place, should the contract revert to rental. The buyer should THEN carry a renters insurance policy.

If the deed is being transferred immediately, then the BUYER gets the policy. Then the seller just has to hope that the policy gets paid.

Most of the time, owner financing is more hassle than it's worth. If the person isn't credit worthy enough to secure a mortgage on their own, they're most likely going to default on YOUR mortgage, also. Then, depending on the condition of the property, you're left with something basically unsellable.

For mobile home insurance, find an agent that represents Foremost INsurance - www.foremost.com. If the home is more than 20 years old, it's uninsurable. After 20 years, they depreciate to nothing.

The buyer pays to insure the property. Make sure that you as the beneficiary is also named as "additional insured" (lien holder-first mortgagee) on the policy. Also make sure that the coverage is at least high enough to cover the amount that is owed you in case of a total loss.

What worries me is that by you asking this question if you are prepared to carry the financing. I'm assuming that you are carrying the 1st trust deed. If you are carrying a 2nd TD, I would just say be extremely careful.

Whoever holds title to the home.

What's the best place to purchase both auto and home insurance from?

I'm buying a new home and changing my auto insurance carrier, what insurance company can offer me the best deal when it comes to providing both home and auto insurance in a combo package?

I use State Farm and have for a long time. They aren't the cheapest, but have handled any claims without question and treated me very well. Good luck.

None. You need to get on the phone and call at least 20 different companies and compare their rates and coverage. It takes time but it is the only way to find out. When you narrow it down to 2 or 3 you need to check them out with the BBB and any state or local consumer protection office. Check out Consumer Reports ratings. To get the best rates with an honest company you have to work at it. And check the best rates for combined home and auto and separate. GL.

8~)

Get an insurance broker! There are so many insurance companies with so many different discount options (I know an insurance company in Ohio that gives discount to certain profession) and it's just impossible to compare every single one of them. Insurance broker can do this for you. I am not sure if we are paying them through our premium or what, but I paid substantially less after I used an insurance broker.

If you want to take both auto and home insurances, most of the companies provide you Miltie policy discount. Before taking any insurance I shop around. You can look at www.Geico.com as they give a very competitive premium for the new customers. All state is also very good. At the same time you may have to look at the state you are in. There may be some local insurance companies which can provide you a better quote. Take 3-4 quotes from different companies and then you can choose from.

There is no one "best" or "cheapest" carrier. You'll have to call around, give your social security number to have a credit check, give them the vehicle information, and get a bunch of quotes to figure out which carrier is cheapest FOR YOU

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http://www.loansandinsurances.com/auto-insurance.html

I work for a Health Insurance company, but I have great success with Metropolitan Life Insurance company for my property and auto insurance. I have had several claims over the last few years and they have always paid really well.

www.libertymutual.com

Go online and get a free quote - you will be more than content

I buying my first home in Georgia and need home insurance, what should I pay to have covered?

What do I need to ask to be covered in my home insurance plan?

Here are some things to consider and ask when comparing policies. What is the liability coverage limits? Do I need excess liability? What are the medical payment limits? Do you need more of either for your purposes (like do you entertain a lot, have hired help on your property, etc.) Does it include worker's comp (in CA it is mandatory) and it is mandated in your state? What is the coverage for out buildings (sheds), fences, yard ornamentation, etc. Are there mold and mildew restrictions? (Many insurers are excluding both after Katrina). Am I in a FEMA flood plane and do I require flood insurance? Do I need tornado insurance? Is wind damage covered? How are payments structured (i.e. do they have nuisance fees if the policy is not paid in full up front) and if so, is it recurring, a percentage or a specified amount per payment? Do I get a discount for: combining home and auto, fire and burglar alarms, being located close to a fire hydrant or fire station, fire proof construction (i.e. concrete roof shingles, metal framing), clearing a 100 foot defensible boundary, being a certain age, having no claims, having fire extinguishers in the kitchen and garage, etc. If going through a broker, ask how they are compensated, by commission you pay or commission paid by the company. If you are college educated, check with your alumni to see if they have an agreement with any certain insurer for discounts (same applies if you belong to professional membership organizations or a union). What is the personal possession coverage and do you require riders for special collections or jewelry or power tools in a workshop?

Home insurance policies are pretty standard, the only variables will be deductibles, contents, outside storage, etc. One thing to keep in mind if you live near the coast is that ins. policies do not cover water damage unless driven by wind. Therefore, if a hurricane blows your house down, you are covered (there are always exceptions), but if there is damage from storm surge or flooding, it is not covered unless you also have flood insurance.

I live in Georgia, and I think you will find coverage very reasonable as compared to some other states. I am with Allstate, and have been very pleased with their rates, plus they give you a discount if you combine your home/auto policies.

Take the highest dedubtible you can afford, because it really reduces your cost to insure.

Here's an excellent consumer advocate website to do some research:

http://clarkhoward.com/

Adam S, Home insurance covers lots of different things. I'm not sure about Georgia regulations, so I recommend you call a nearby home insurance agent. http://www.easyhomeinsuranceguide.com/Georgia-Home-Insurance.html. They will be able to assist you.

What do you know about home insurance involving a fire?

My friend had a fire in her home, during the final days of the sale. The insurance company is trying to prove fraud on her part, which there is none, and she has not paid out since Sept. 28, 2006. She is going for a polygraph test later next month, in the mean time she has no where to live, they have given her $2500 living allowance and refuse to give her more at this time. Any suggestions on what she can or should do?

If she truly did nothing to cause the fire, then it may be time for her to hire an attorney.

5 months to settle a claim is not really an unreasonable time, especially if there are suspicious circumstances. And if they do prove that she started the fire, that $2500 they gave her under the "additional living expense" portion of her homeowners policy, they are going to want it back. If she started the fire, they legally don't have to pay her a dime, including living expenses.

Insurance companies have every right to investigate any claim, auto, homeowners, injury claims, anything they suspect might be fraud. Insurance fraud is a multi-billion dollar industry in this country.

I found this http://wiz.sc/insurance740 article on home insurance which offers information as well as advice and tips etc, hope it helps.

insurance companies are not going to shell out the thousands of dollars for an investigation if there is nothing to investigate. they have a reason to believe there is something suspicious going on. your friend is going to have to wait it out. she can hire an attorney if she wants to pay for one, unfortunatley theres not a lot they can do until the company decides they are satisfied with the investigation findings.

What insurance company is it?

What sale? She has not paid out WHAT?

The insurance company doesn't determine if arson is involved - the fire marshall does that. If the report comes back arson - and if she's a suspect - then by law they have to fully investigate the claim before they can pay, because she is NOT going to get any money for that house if she burned it down.

HOWEVER. If there is a MORTGAGE on the house, the mortgagee can still be paid, up to their interest in the value of the house, or the amount on the policy.

Did the fire dept come up with a cause for the fire? If it was "suspicious", the company can have their SIU investigate. How long has she been waiting for payment? Obviously, the house didn't sell. I would call the State Insurance Dept if she feels the investigation is taking too long - & she did nothing wrong.

Can I ever get home insurance again if a previous one has been cancelled?

About 1 yr ago I cancelled my DD for my home insurance to cut costs. My bank then said as I never told them directly they have refused my insurance policy and that I would find it difficult to get another policy. I am now looking to start another home insurance policy but they all ask the question if I have been refused before? What does this mean? As it is obviously important to have it as you never know what will happen.

Shouldn't be a problem; if your claims history is clean and credit decent, you should be able to find a company that will start a policy for you. You haven't really been refused, you were cancelled for non-payment.

Don't know what the deal is with your bank, you'd think they'd be happy to add an insurer and happier still to escrow the payment.

I am sure if you told new insurance company why it was cancelled then they would disregard why it was refused.....Refusal because of building defects or bad security is what insurance companies are looking out for not for petty spite reasons put forward by a bank..

How does cancelling direct deposit cut costs? You still have to pay the insurance premium. Does this mean they cancelled you for non-payment? Any mortagage lender requires home owners insurance. It is mandatory, not optional, if you don't pay it they will assign an insurance provider for you at a significantly higher rate and add it to your mortgage payments. Something in your story does not add up.

Getting homeowners insurance if you have had a policy cancelled, although difficult, is not impossible to get. Be honest with the agent when you speak with them and they should try to help you out.

Good luck!

No, you'll still be able to get a policy.

A few extra steps will need to be taken, but it shouldn't be an issue. The Insurance company will need to send a Rep to take photos of the home and any unrepaired damage will need to be fixed before the policy is issued, or they might just exclude that damage.

Did you have a mortgage this past year? If you did, the bank might have Force Placed an Insurance policy on your home and been charging you through the Escrow Company.

How can I know if my old home insurance is not commiting fraud since it cancelled me after a claim?

When I removed the carpet of my home, I noticed that the concrete was all cracked and the walls were breaking apart, I put a claim with my home insurance and they said won't be responsible for the repairs. A few days later they sent me a letter to notify they won't insurance any more my house. Now I have no money to repair it and I don't know if the insurance effective now won't do the same and I am paying for no cover at all.

homeinsurance.awardspace.us - try this one. Got my home insurance from them. As I know they provide such a service.

Here's the scoop:

1. You uncovered damage that wasn't caused by an insurable event, so it's proper that they denied the claim.

2. You also uncovered damage that may be structural. Consequently, with this new information, the insurance company chose to cancel your policy.

Without knowing the insurance regulations of your state, it's hard to say whether or not this was within the regulations. In my state, for homeowners, the insurance company can cancel a policy "for any reason" or "for no stated reason".

Gotta get a lawyer!

lawyer up