Seeing Spikes In Insurance Rates? What Your Rights Are As A Policy Holder
When you receive an annual auto-renewal notice in the mail regarding your homeowners insurance, do you ever stop to read it? You should. There are changes listed on these notices that might affect you financially, and/or affect your decision to continue being a customer of that insurance company. Additionally, you might notice some spikes in your insurance rates. At this point, if the insurance company does not provide a logical and sensible explanation of the insurance hike on your bill, you have certain rights you can exercise to find out why.
Request a Full, Detailed Explanation in Writing
You can ask for a full, detailed explanation in writing. By law, the insurance companies are supposed to provide you with detailed explanations any time there is a price hike in your insurance. Make sure it is in writing and not just a verbal explanation in case there is any legal matter that needs to be addressed. If the insurance company calls you to explain, stop the representative from talking and request a written explanation. This can be by email, but an official letter on company letterhead is preferential to an email.
Request a Reduction in Monthly Payments or a Restructured Payment Schedule
You can request a reduction in your monthly insurance premiums as well as a restructured payment schedule when insurance costs jump. The insurance company wants to keep you as a customer, and most of them are pretty understanding about the new expense. If you have not made any claims against your homeowner's insurance in the last five years, they can work with you. If you have never filed a claim, the insurance company should definitely try to find some credits to apply to your policy.
A restructured payment schedule can help, too. You can make semi-monthly or weekly insurance payments if that makes it easier for you. Many insurance companies will consider a semi-monthly payment plan or move your payment due date to a time in the month where it will be easier for you to make your payment on time.
Drop Your Current Policy Holder
When all of the above does not work in your favor, you can always drop your current policy in favor of a new insurance company. Sometimes the threat of losing a loyal customer is enough for any insurance provider to take a second look at your customer history with them. If not, there are several other providers that have comparable policies, rates, and coverages.