I’m not sure if anyone can answer this but I’ll try. So we had our home owners insurance triple when it renewed which is insane. We shopped around and now have new insurance with Progressive for home and auto. The policy specifically says on it that’s it’s to be a monthly EFT not to be put in Escrow. We pre called the mortgage company told them what we are doing and they said we have to wait till they have our new insurance before we do anything else. Well they have it now and they paid progressive for it even though we told them not to. And the papers literally said not be in escrow.
The mortgage company realizes their mistake and is trying to help us fix it but Progressive says the mortgage company should have known better because it said EFT no escrow. And Progressive is saying they cannot refund the mortgage company. Supposedly our only option is to cancel the plan and rewrite it but rates have gone up again by about $150 yearly and we’d end up paying more for their mistake. Our agent isn’t being very helpful, says he knows Progressives system and that they can’t refund the mortgage company. And I get $150 more annually isn’t a huge deal but why do we have to pay for their mistakes? I will also say we paid our monthly payment in addition to the mortgage company paying progressive. So it’s being double paid right now.
Does anyone know if Progressive can issue a refund? Or how else to fix this mess? Even if we do rewrite it how do we stop them from making this error again? It couldn’t have been more clear in the papers as progressive said that it was no escrow. But then why did Progressive accept the payment from the mortgage company if they saw that and we had already made the monthly payment?!
Home owners insurance mistake
byu/BarbiePinkSparkles inInsurance
Posted by BarbiePinkSparkles
6 Comments
Unless the refund is over $10,000 Progressive will always refund the homeowner.
Ask them to refund the $$ to you and then you make an escrow only payment.
Your issue is with your mortgage company, not Progressive. Progressive receives thousands of payments every day. And in all likelihood the payment for your specific policy is part of a single large payment issued that day from the mortgage company to Progressive for anywhere from dozens to hundreds of policies, maybe more. They can’t reject the payment – it all gets worked out by accounting after the money hits Progressive’s account.
The mortgage company should be the ones making this right, and you should be working with them. Not sure what they can do, but the responsibility is not Progressive’s. If you really need to cancel and rewrite for an additional $150, you should be looking to the mortgage company to cover that $150.
They need to refund your overpayment but your escrow money is likely paid for you in full without any refund coming
Your beef is with the bank who sent the payment that should not have been sent
Not with Progressive, but there is probably not an easy way to change what has happened. Insurance billing systems do not have a native way to just refund premium that has been paid unless the policy has been cancelled. Otherwise it needs to be some sort of back end workaround and Progressive is not going to put in the man hours to make that happen for one person.
Is there a specific reason you prefer to make monthly payments directly instead of from your escrow account? Did you reach out to the mortgage company to cancel the escrow account or ask for insurance to be removed prior to the purchase of the policy?
Progressive will refund you any overpayment. Once you receive the money, put it back into your mortgagee account. Absolutely no need to rewrite this policy. I’ve been a Progressive agent for 25 yrs and this happens all the time.
When I first got homeowners through progressive (homesite) my mortgage company paid them twice. Progressive mailed me a check for the second payment before I had even realized what happened. I cashed the check and paid the money right back into my mortgage escrow.