What do I do if I think my home owner insurance has been over charging me? ?

I think they have been Red Lining! If that is the correct phrase. I recently changed my insurance company and found out that they have been charging me almost 5 Times what I will be paying for the same type of coverage. What can I do? I am unemployed and need my money

I beg to differ about the meaning of the term "redlining" by one of my colleagues. According to Wikipedia: "Redlining is the practice of denying or increasing the cost of services such as banking, insurance, access to jobs,[2] access to health care,[3] or even supermarkets[4] to residents in certain often racially determined[5] areas."

I have personally participated in surveys done by Fair Housing Organizations to determine if redlining was occurring in the city where I am based and in two of the outlying (also urban areas). We determined that redlining was occurring because prospective clients were being offered policies that did not include several key endorsements and were being told they were not available (when in fact they were) and were being charged higher rates.

Redlining does exist and it is not only done in denying a policy but also in denying certain coverages or charging higher rates in supposedly less desirable neighborhoods.

That being said it would be difficult to state that you were the victim of redlining without a lot more information and a line by line comparison of your policy. In addition a lot of other factors could be coming in to play here such as:

1) The new policy you have purchased differs significantly in coverages, form, deductible, etc. For example you could have had an HO-3 Policy with a $500 deductible, Replacement cost on contents, Sewer/water Backup and Ordinance & Law Coverage on the old policy and the new policy could be an HO-2 without Replacement on contents without Sewer or Ordinance & Law and with a $1,000 deductible.

2) Coverage A on the Dwelling itself could be substantially lower on the new policy than it was on the old policy. Other limits could be substantially different.

3) Your credit (which can be one of the factors that was used to rate your policy) could have substantially improved.

4) You could have become eligible for discounts that you might not have qualified for previously or with the prior insurer such as a multi-policy discount (some companies give you a discount if you have your auto & home or home & life insured with them), a new alarm system, renovation of the systems in your house (some companies give you up to a 20% discount if you have renovated your electric, plumbing, heating and roof within the last 10 years). Some companies can give you a Senior Citizen discount.

I would go over both policies and try to get to the bottom of the differences first in these areas. If there is still an enormous discrepancy such as you state, then I would contact your state insurance commissioner and a local fair housing non-profit group in your state and complain. You will not only be helping yourself but also be helping others to not suffer the same consequences.

I hope this helps. Good Luck!

Red lining means, refusing to write coverage because you're in a bad neighborhood. So they can't be redlining you, if you actually have a policy.

Best thing to do, is to shop around for new coverage. But I guarantee you, the new policy is NOT 1/5 of the cost, unless there was a DRASTIC coverage change. Either they haven't run your credit and clue report yet, or there's an unknown hazard not disclosed to the new carrier, or they've cut your coverage by 2/3, or SOMETHING.

You're best off asking the new agent, WHY they are so much cheaper than the old company - and give them the old policy, so they can give you a DETAILED evaluation - preferably in writing.

Five times what? It's your house - you've always had the option of changing insurance companies.

First off unless you have something in writing saying, "We are going to charge more for this area because it's a (Latino/Asian/etc) neighborhood, you can forget the Redlining. An insurer can choose to charge higher rates and/or limit coverage for a particular city or even a part of a city due to loss experience/unusual exposure. However there's no way the premium would drop by that amount without there being a serious reduction in coverage, description, limits, deductibles or policy terms. I would go over both policies in detail and try and figure out where the difference is.
As for getting back a portion of what you paid, like I said unless you have something in writing from the insurer saying "We're charging you more than others in the same circumstances because you're Welsh." you cannot get anything back. You agreed to the premium when you took the policy out, and you cannot go back and try and get a refund after coverage has been afforded because you found a better deal after the fact.

i WOULD CONTACT YOUR INSURANCE COMPANY AND TRY TO WORK IT OUT, IF YOU DON'T GET ANYWHERE WITH THEM THEN TELL THEM YOUR ARE GOING TO CONTACT: DEPT. OF INSURANCE (IN YOUR STATE YOU LIVE IN) I BET THEY WILL WAIT UP AND TAKE CARE OF YOUR ISSUE'S WHEN YOU TELL THEM " i WILL BE CONTACTING DEPT. OF INSURANCE"

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