I have my homeowners ins. since 3 years, now I have been told that my insurance premium will double 2012.They base this on a new zoning. Is this legal
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UPDATED: Apr 7, 2011
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Insurance Question from Newnan, GA
Asked on 04/07/2011
I have my homeowners ins. since 3 years, now I have been told that my insurance premium will double 2012.They base this on a new zoning. Is this legal Homeowners insurance with allstate for around $700 at the moment. If I would like the conditions - reimbursement value of home - the same, Allstate wll double the premium for 2012 to $1,400.Can they do this? I always paid my Premium. They paid for replacement of my roof 2 years ago.
Answer given on April 08, 2011
Insurance companies often take rate increases over the years. I’m not aware of a “zoning” change as a term, but it may be they have determined your property location is in a more hazardous zone due to changes in fire protection or accessibility.
I would suggest that you shop your insurance around. Having had a loss 2 years ago could present a problem for some insurance companies, but if it was part of a large storm, often referred to as a catastrophe loss, some insurance companies may not be concerned about the loss. I would suggest that you contact an independent insurance agent who represents more than one insurance company, thus giving them access to more companies.
You should also speak to your Allstate agent and see if there is something you can do to reduce the premium. You may investigate a higher deductible, or see if there is anything you can do to reduce the risk to Allstate, and reduce your premium at the same time.
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