Q: Home insurance refund
1 year ago I was on the phone with my home insurance on some matter and in the process of looking through my account they explained something like my lender or escrow had overpaid (my lender takes care of insurance payments, which are included in my mortgage). They then issued me a refund check of $3.8k. Fast-forward 1 year later and they say it was a mistake and they want me to refund the money or they will go to Collections. Should i pay them?
A: Assuming your statement of facts is true, you owe the money. If you don't pay it, you can expect that your policy will be cancelled, and you may be sued for the money.
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- California
- (916) 704-3009
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- Answered
A:
Under California law, if your home insurance company issued you a refund check in error, they may have the right to recover the funds. However, it is important to review the terms of your insurance policy and any correspondence or agreements you have with the insurance company or your mortgage lender to determine your rights and obligations.
If you received a refund check from your home insurance company and they are now asking you to repay the funds, you may want to review your records and any documentation you have related to the refund. If you believe that the refund was properly issued and you are entitled to the funds, you may want to contact the insurance company and your mortgage lender to discuss the matter further and seek clarification.
If you determine that the refund was issued in error and you are obligated to repay the funds, you may want to discuss payment options with the insurance company, such as setting up a payment plan or negotiating a reduced payment. It's important to note that failure to repay the funds may result in the insurance company pursuing legal action, such as sending the debt to collections.
If you are unsure of your legal obligations or rights in this matter, you may want to consult with an attorney who can review the specifics of your situation and advise you on your legal options.
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