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Homeowners Insurance Question from Mount Prospect, Illinois

Asked on 4/6/2011.   This question has received 1538 views.
How can I reinstate my homeowner insurance that was terminated due to no payment ?   My homeowner insurance was terminated due to no payment and the insurance that bank purchased for me is 4 x the amount I normally pay which put my escrow account in the negative balance, so right now I have to either pay the shortage upfront or my monthly payments are so high that I can barely afford it. I need to somehow reistate the insurance that was terminated or buy insurance for that time frame (in the past) june 2010 - dec 2010. What can I do, where can I go ?

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Answer given on April 8, 2011 by DC

Unfortunately, it is very unlikely you will be able to go back and reinstate the insurance that lapsed in June.  I do not know of any insurance company that will go back that far.

I do suggest that you contact an insurance agent, either your previous one or a new one and start a new policy immediately.  When you do that, you can stop your bank from continuing their policy.  They will stop once they receive proof of a new policy.  You also should be able to set up a payment plan for your new homeowner policy that should be affordable for you. 

Once you have replaced your insurance, you might try to call your bank to try to set up a different payment plan for the insurance they purchased for those months.  They may let you pay a little less once you show that you have obtained insurance on the home through your agent.

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