Can Home insurance not binding and raising rates after closing

I purchased the home based on the home insurance quote provided by the agent. After the closing the insurance company raised the premium is refusing to bind until I pay the difference. I would have not bought the property if I knew the insurance was so high.

Asked on March 12, 2017 under Real Estate Law, Florida

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

You say the premium was raised after the closing. That implies that the agent provided the information that was available to her at the time, since she would not know, and have no control over, what the insurer will do in the future. If that is the case, you would not have any recourse other than to try to price out and find cheaper insurance: the agent (and/or seller, too, for that matter) did not do anything wrong if the gave you the best information they had at the time, and then insurer, who is not under their control, chose to raise the rates. 

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

You say the premium was raised after the closing. That implies that the agent provided the information that was available to her at the time, since she would not know, and have no control over, what the insurer will do in the future. If that is the case, you would not have any recourse other than to try to price out and find cheaper insurance: the agent (and/or seller, too, for that matter) did not do anything wrong if the gave you the best information they had at the time, and then insurer, who is not under their control, chose to raise the rates. 


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