Is there a limit to how much a homeowner’s insurance company can increase rates?
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Is there a limit to how much a homeowner’s insurance company can increase rates?
My insurance company increased my rates by 83% between last year’s escrow analysis and when the payment was due, without notifying me, leaving my paying the higher rate for most of the year. I’ve switched insurers but my escrow payment is about to balloon to recover that cost. It would be nice if I could recoup some of that money.
Asked on April 10, 2013 under Business Law, Louisiana
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
No, there is limit: a homeowner's insurance company can increase rates by any amount, subject to only the following limitation: it can only increase rates when the policy is renewing or when otherwise permitted by the terms of the insurance policy (which, after all, is a contract). The remedy for an insurer who charges you more than you want to pay is to find a different insurer.
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