Answer: The extra security of being over insured is not worth the price you are paying. You understandingly wish to pay the minimum required to satisfy the lender’s requirements. Given that the other agent secured a policy without your approval, demand a refund of the annual premium you paid through your closing costs.
If the agent is unwilling to accommodate you, have an attorney contact them. The agent may have merely made an error, or he acted unscrupulously. Many agents race to issue an insurance binder in the hopes this will secure your business. This type of practice is certainly frowned upon by the Massachusetts Division of Insurance. Perhaps filing a complaint the division of insurance will motivate the agent to give your refund.
Before you do this, be sure your longstanding agent’s policy terms are acceptable to your lender. Remember, your lender likely only approved the terms of the other insurance agent’s binder.
Attorney James Haroutunian practices real estate law, estate planning and small business formation in Billerica at 630 Boston Road. Contact him with questions at 978-671-0711 or email him at firstname.lastname@example.org.