My home owners insurance company was mistakenly paid twice.

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Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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UPDATED: Oct 19, 2019

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Insurance Question from Desoto, TX

Asked on 10/19/2019

My home owners insurance company was mistakenly paid twice. Allstate was authorized and has been automatically deductng the payment from my husband's bank account and our insurance has never lasped. Bank of America brought our loan and made a mistake and added the insurance payment to our escrow and sent our insurance co a check during the same time the insurance was being deducted from my husband's account. Both companies acknowledged the error but neither has taken responsibility to fix it after several conversations. Meanwhile our house payments have zoomed up. Who is responsible and what can we do? Help please, thank you

Answer given on November 09, 2019

This seems to be a full problem and mistake by Bank of America by accidentally setting up the purchased account as an impound. It’s unclear how long this has gone on, but there is a responsibility on your part to have noticed the increased loan paymennt. Having said that, Bank of America needs to work with Allstate about a refund of the duplicate payment. You should follow up with Allstate and/or your agent to be sure it gets returned to the Bank. That is really the only place the refund can go, since it was paid by the bank to the insurance company. 

After the refund is confirmed then Bank of America needs to refund the payment to you, as well as any additional payments made continuing the impound account. They also need to be sure to adjust your monthly payments to the correct amount. You should keep an eye on the payments going forward to be sure this is done.


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