Money back for claims-free home insurance?

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PostPosted: Fri Sep 20, 2013 6:35 am   Post subject: Money back for claims-free home insurance?  

My parents haven’t been able to pay towards their home insurance policy now for a while and as a result their policy was called off. They are now wondering what will happen to the money they have been paying all the years. Will they get it back since they haven’t made a single claim yet?


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Jennifermurphy
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PostPosted: Mon Sep 23, 2013 5:36 am   Post subject:   

Quote:
Will they get it back since they haven’t made a single claim yet?


Sorry my dear, that money is gone! They are not going to get it back.



Since they didn't make any claims during the tenure of the policy, they'd get good deals if they now go ahead and get another insurance.



They can also check with the agent/carrier to find out if somehow the policy could be reinstated - even if with a penalty. That would be helpful I guess.


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PostPosted: Mon Sep 23, 2013 8:01 pm   Post subject:   

Quote:
Sorry my dear, that money is gone!
The statement is true, but was not explained at all.



Homeowners (and auto) insurance is paid for one year at a time. You either use it or you don't. Most people don't. There is no "cash value" in these forms of insurance, just like there isn't in health or disability income insurance.


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PostPosted: Tue Sep 24, 2013 3:53 am   Post subject:   

Quote:
The statement is true, but was not explained at all.


What would the OP do with an explanation when all the money is gone?


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PostPosted: Tue Sep 24, 2013 4:33 am   Post subject:   

Your parents did get something for the money they spent. The insurance company agreed to assume a lot of risk, up to the policy limits in return for the premium. That risk was taken over by the insurance company. By your reckoning, if your parents has paid $1000 in premiums and then has a $100,000 loss, your parents should need to pay back the $99,000. Would they have done that? See how assumption of risk is that is being paid for?

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PostPosted: Tue Sep 24, 2013 10:08 pm   Post subject:   

Quote:
What would the OP do with an explanation when all the money is gone?
They would have a better understanding of insurance than you do Mango, which is why you did not offer an explanation.



As tcope said, the insureds had the peace of mind knowing that a covered loss was just that . . . covered. You either have a claim during the policy period or you don't. Life is usually better when we live claim-free.


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PostPosted: Wed Sep 25, 2013 3:51 am   Post subject:   

Quote:
They would have a better understanding of insurance than you do Mango


Something like beginning studies when the examinations are over and moreover, the results are out. You like it Max, right?


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PostPosted: Wed Sep 25, 2013 4:06 am   Post subject:   

Makes no sense.



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