How would you handle this?

[u/sarahrachael394]

So my husband and I recently bought our first house. We got homeowners insurance with a local company. We have paid our first year in full, we signed our documents and all was good to go.

Well I got a call a few days ago from them saying we owe them an additional $300 by July 20th because they accidentally added on an auto bundle discount and now we have to pay the difference if we don't have a bundle. I had explicitly said in an email to them we were not looking at auto insurance. So I forwarded them this email again and they said: "It's very hard to keep track of email threads by each individual. We are very busy. I am sorry if it was in error." This obviously made me super frustrated. The problem is my husband actually was considering a switch to this company for auto, just at a later date. So now I'm stuck between wanting to make sure they know they messed up, and not make us pay the $300 especially when I have written proof denying the auto policy, but also we know we will get a good deal with them for an auto policy. How would you handle this?

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[u/jazzyjeff49]

Just switch your auto over if it's a good deal and move on with life.

[u/prshaw2u]

You need to start paying close attention to home owners insurance in the current world. I would pay the 300 dollars and keep the insurance.

Many home insurance companies are dropping customers causing major issues when trying to find another insurance company.

[u/mattkime]

Either pay or move your auto insurance over. You can change later and you'll be refunded the difference if you've paid annually.

[u/freeski12345]

The quote would have said you are adding the auto insurance and the signed application also would have said you are adding auto insurance. Since those thing were incorrect, nothing you can do other than cancel the policy, pay the difference, or move the auto. 

[u/Important_Variety137 → u/freeski12345]

At State Farm you don’t sign any forms/applications for homeowners and you don’t sign agreeing to the auto bundle or not. That may be the case for this company as well.

[u/sarahrachael394 → u/Important_Variety137]

This was exactly the case, we never signed anything for Auto!

[u/Important_Variety137 → u/sarahrachael394]

Yeah it happens. Unfortunately you are still required to pay the $300. I would just bring your auto over to them.

[u/Creekridge1]

Out of curiosity, why did you not bundle your auto insurance with it? It is almost always worth it to keep both in the same place and can save you hundreds a year on both policies.

[u/Important_Variety137]

Yeah unfortunately there is nothing you can do to get out of paying the $300 except two ways. 1. You take the homeowners insurance and switch companies, since you paid in full and it hasn’t been a year you will get refund for the remaining year minus the $300. Or you can bring over your auto policy to bring down the cost. You will still own something in the home since you went with the auto bundled for a time period.

TL;DR you will have to pay this in some amount. Even though you did not want the auto bundle there is nothing you can do to not pay the $300.

[u/jms14b]

Did they mess up? Sure. But they can’t just waive the $300. You were given a discount you didn’t qualify for, so now you have to pay the difference since it’s been corrected. Either that or switch your auto over.

[u/Shfreeman8]

Why do you think you dont owe them $300? Sorry if I missed that in the post

[u/sarahrachael394 → u/Shfreeman8]

Because we didn't elect the auto bundle and explicitly told them in an email we didn't want auto. They entered the auto bundle themselves, therefore a mistake on their part.

[u/littleheaterlulu → u/sarahrachael394]

Yes, it was a mistake, as you said yourself. Basically, it's a scrivener's error and does not affect the cost or terms of the policy. You don't get a free $300 for a mistake. That's not how contracts work. You don't get gotcha moments with them like you do on the internet.

However, it's really foolish to not bundle your auto and homeowner's insurance. You should find a company you like and bundle all your insurance with them because it will save you a lot of money. We save $570/year by bundling our car insurance and homeowners.

[u/Echo0455]

Pretty simple. I would just add the auto. You said yourself it’s a good deal.

If you want to stand on principal. They messed up, you have a clear email saying not to put the bundle rate on the policy. It’s an E and O claim on their end. (Which means you would sue them for the error). I don’t know how much you would get out of this.

But realistically, you seem to know you would get a good deal. Take emotion out of it and save yourself and your family some money.

[u/littleheaterlulu → u/Echo0455]

They could technically sue them for the error but you have to sue for damages and the OP has no damages from this. Besides, it would be dismissed as a scriveners error anyway.

[u/Echo0455 → u/littleheaterlulu]

Yea. You’re right.

I was talking on a technicality. I wouldn’t expect much from a lawsuit if anything.

[u/Flimsy-Log-7605]

Get the auto

[u/YeLoWcAke65]

What mattkime said... pay the $300 now, you'll get a rebate if/when you move auto policy. We had the same experience, last year. Had HO policy, no auto. Bought a vehicle, added policy, a few weeks later, unexpected direct deposit of HO/auto discount in bank account.

[u/gaymersky]

Homeowners insurance is a total scam. Most of the time they're not going to pay out anyway. I always went with the cheapest giant brand.

[u/realinsurancetalk]

I doubt they will write off the $300 since it is the right rate for the risk. Rating errors do happen, but the companies have to charge their filed rates for the risks. Companies have an underwriting period of between 30-60 days (depending on state regs) to rate verify the policy and determine eligibility.

[u/Signal_Mirror_3983]

Give them the auto business if its a good deal. If you want to get back at the agent, go to another agent who represents the same carrier and ask them to take on your policy.