I think our homeowners insurance made a mistake?

Question

I just found out that our dwelling coverage limit of liability should be for about $135,000 but our policy has been for $259,000 for the last three years. The difference in premium is about half. Can I get a refund for the last few years we were "overcharged"? We've had the same agent the whole time and she found this mistake when we went to renew and I had a question about something else on the policy. In Florida.

Answer 1

No,

You can not get a refund. You were insured for 259,000 and paid premium for that. Had you experienced a loss, they would have paid up to the coverage limit of 259,000.  Therefore, they rendered the service you paid for.

However, you can speak to your agent about reducing  your coverage limit and your future premiums.

Answer 2

No, you can't.  Only for the current term, and likely the insurance company won't backdate the endorsement more than 60 days.

But why exactly do you think that the dwelling "should" be $135,000?  That's a MASSIVE difference.  I hope you - or your agent - aren't confusing the market value with the insurance value (which is cost to rebuild).

Answer 3

It's unlikely they will refund you, but you can always try. There's usually a reason that your dwelling coverage is higher than the actual replacement cost of the home. Sometimes, the mortgage companies insist on the dwelling coverage matching the loan amount whether or not it's considerable more than the actual replacement cost.

Answer 4

Sorry, no refunds.  You could always try, but it's not likely.