What Are My Rights Under My Homeowner’s Insurance Policy?

A Homeowner’s Insurance Update

Homeowner’s insurance is an important purchase for many people.  It can protect your assets, provide for liability protection in the event of a claim, and satisfy your mortgage holder.  Most homeowner’s insurance policies provide a package of coverages that include coverage for the dwelling, other structures, personal property, loss of use, and personal liability.

The extent or kind of coverage you receive depends on what type of policy you buy.  State and federal laws provide you with legal entitlements and protections when you purchase any kind of homeowner’s insurance policy.  Here are a few of your rights under most homeowner’s insurance policies.

• Your insurer cannot cancel your coverage except for a few limited reasons.  Failure to pay your premium, material misrepresentation, and a material change in exposure is the main reasons.  The insurer must give you a specific written notice.
• If your home insurer finds an error in your premium calculations before 60 days have passed, you have the right to receive a written notice of the error and the new premium amount.
• You have the right to a refund of a portion of the premium if you cancel your homeowner’s insurance prior to the policy’s end date.
• You are legally entitled to be treated in “good faith” by your insurance company and its representatives at all times.
• No insurer shall discriminate in its claim settlement practices based on a claimant’s age, race, gender, income, religion, language, sexual orientation, ancestry, national origin, physical disability, or upon the territory of the property or person insured.
• You are entitled to a “good faith” settlement.  Every insurer must attempt “in good faith” to make prompt, fair, and equitable settlements of claims in which liability has become reasonably clear.  You have the right to arbitration if you do not like the settlement offer from the insurer.

This entry was posted on Thursday, September 26th, 2024 at 2:12 pm and is filed under Home Insurance, Personal Insurance. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.