Wednesday, July 11, 2012

Homesite Insurance agrees to refund $386,000 in overcharges to policyholders

Homesite Insurance Company of the Midwest has agreed to refund hundreds of thousands of dollars that it overcharged homeowners insurance policyholders in Washington state.

Insurance Commissioner Mike Kreidler is also fining the company $30,000.

Due to a computer issue, the company says, it used rates last year that were different from the rates approved by Washington Insurance Commissioner Mike Kreidler for that time period. The rates it charged had been approved for an earlier period.

As a result, Homesite overcharged 4,504 consumers a total of $386,578. (It also undercharged 2,140 customers $154,241, but those policyholders won't have to pay that.)

The company has agreed to contact the overcharged consumers and issue refunds, plus 8 percent interest, by Sept. 30th.