Legal Question in Insurance Law in California
Obligated to original insurance company?
I decided to switch insurance companies for my homeowners insurance. I told my agent verbally and in writting later on. I continued to get bills for the former company's insurance, past the date I cancelled. My former agent insists that if I provide them with a copy of my current insurance, they will just bill me for the time between the two coverages that I didn't have insurance. What legal obligation do I have to either provide them with that information OR pay them for the difference in time? I've written them several letters asking for this information. Plus, I've even insisted that they stop sending me bills. They continue to insist that I send them a copy of my new insurance. Today I got a letter from a Collections Agency asking for the money.
Am I legally obligated to provide my old insurance company with my new insurance company info so they can bill me for the insurance coverage ''gap''? Is that even any of their business? Am I legally obligated to pay my insurance company for the ''gap''?
Also, what ''watchdog'' group exists for insurance companies that I can contact to report and complain about this situation?
2 Answers from Attorneys
Re: Obligated to original insurance company?
If you timely informed your agent, then your agent should take responsibility for the payments. I hope you've switched agents. Why pay now for the gap, especially since you had no loss?
Re: Obligated to original insurance company?
Normally when changing insurers, the new one will begin immediately after the old one expires. There is no gap. If that is not the situation, get the second one to change its policy date if it made a mistake.
Alternatively, did you knowingly mean to be without coverage for a period of time? Did you know this was a violation of your mortgage?
If so, you erred since your own interests are best served by not having any gaps in coverage. Your homeowners provides liability coverage as well as property coverage.
You are probably best off by paying the small difference so coverage remains uninterrupted. Or get the second company to rewrite the beginning date. And if you had a new agent for the second policy, ask him why this happened at all.
Either way, don't have a gap because if you need the coverage later on, you will surely pay more for any problem which comes up later.
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