can insurance charge double if you miss one payment ?
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UPDATED: Nov 11, 2013
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Insurance Question from Lady Lake, FL
Asked on 11/11/2013
can insurance charge double if you miss one payment ? MY father had AAA for over 45 years , his wife passed , had a new roof put on , thought he paid the insurance on his AAA card but was the payment for the roof supplies ( very close in figures) when we went down to get a copy of his papers that mine name ( his daughter ) was put on they said he did not have insurance , we argued the fact but they had dropped him, NOW he is blackballed and cannot get home insurance for less that 1200 for 6 months , he was paying 500 for the year . Can they legally do this without notification?
Answer given on November 14, 2013
If a homeowner premium is not paid by the due date, the insurance company must send a notice to the homeowner at the address on the policy giving the client 10-15 days to make payment on the policy. If the premium is paid in that time frame then the insurance will be reinstated back to the original due date and the insurance will continue. If it is not paid, then the insurance cancels. It is up to the insurance company as to whether they will allow a reinstatement with a lapse in coverage.Depending upon the time between the cancellation date and now, the insurance company may allow a reinstatement with lapse. Contact the company and see if they will do this. You will have to confirm there have been no losses, but it could work.The fact that he cancelled should not affect his ability to find other insurance coverage. It may be that there is a problem with the property ( you mentioned a new roof) or the area is a problem for all insurance companies. Contact an independent insurance agent, who represents multiple insurance companies and see if they can help. The cost may be more, but again this may be due to a loss or something other than “blackballing”.
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