Insurance for More Than Home's Worth

Is it legal for an insurance company to make you insure your home for more than it is worth? Do you have to do this? How much notice do they have to give you of an increase in your rate?

 

Answer:

I have never heard of this. I can only assume that if the home has not been appraised for some time that the insurance company is attempting to keep the coverage in line with market prices in the area. I don't think there is any legal compulsion for you to increase your insurance in any case, although the company may think that it's necessary. If you are truly being "forced" to accept a higher policy amount, you could consult with a lawyer. You may also want to find another insurance company. If you decide to go this route, you can get quotes online through our trusted sponsors.

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