Question Every Bill

 

What do you do if something does not make sense on a bill? Unless there is a substantial error, most people will pay the bill without ever questioning the charges.  This can be a costly mistake on the part of consumers. 

A couple of months ago I received our annual homeowners insurance statement.  I noticed that my premium had gone from $635 to $800 per year, a 26% increase.  I promptly called my insurance company and asked for clarification.

They explained that they based their fee on the estimated cost for  rebuilding a home in our area. It didn’t make sense that the cost had risen $70,000 in one year.
 
I went online to www.accucoverage.com and got a replacement cost report for $7.  This independent company  estimated that the cost to rebuild my home would be $28,000 more than last year.  Even though I felt it was still too high, it was better than the $70,000 my insurance company estimated. 

My insurance company accepted the new estimate and dropped my yearly premium to  $661 instead of the $800 they originally wanted to charge me.  I saved $139 dollars because I took the time to investigate and research for a way to lower the cost.   The $7 was well worth the money.

But I’m not done yet.  Another financial blessing awaited me as well.  I found out that my my mortgage payment was going to go up $20 per month due to the original rise in cost from my homeowner’s insurance.  When the insurance company made the new adjustment, they lowered my payment by $21 per month. 

My actions saved me from having to pay an additional $240 a year on my mortgage.  The $240  plus the $139 I saved on my insurrance premium came up to a grand total of $379.  The lesson for today is don’t be afraid to ask questions and challenge the system if you feel something is not right.