Legal Question in Insurance Law in New York

Re: raising premiums after paying for the policy

The insurance company should have sent you a renewal notice at least 60 days (but not more than 90 days) before policy expiration indicating the change of premium. Premium increases are the way of the world, even when there are no claims, because the poor, helpless insurance companies are so put upon.

If they did not give you notice of the change of premium, then the law requires them to renew at the same premium. Getting them to comply will require a lawsuit. Much of the trouble will turn on whether the mortgage company paid the whole renewal premium. (They almost certainly did), in which case the "short term cancellation penalty" will almost certainly wipe out any savings you could realize with a different company.

Make an entry in your calendar for 50 days before renewal of your insurance. Call the agent and get a written quote for the renewal. (You're entitled to this under Insurance Department regulations.) Then take your declarations page and renewal quote to an independent broker and get quotes for a new policy. If it's at an advantageous premium, make sure your mortgage company knows not to pay the existing carrier and make sure the mortgage company receives a certificate of insurance for the new policy.

I wish I could offer a better solution for this year, but the economies of scale favor the insurance company and not you.