Can an insurance company double a homeowner's premium?
Question Details: Our insurer changed the fire classification from a 6 to a 10 so we went from 4k to 8k per year. They say it is because we are over 10 miles class 10 from a fire station staffed full time, vs under 5 miles class 5 from 2 volunteer stations that are staffed most of the time. This seems exorbitant and difficult to budget.
Yes, the insurer can increase, even double, your premiums on this basis: insurers are allowed to set or change premiums based on the perceived or assessed risk, and if the re-evaluate your situation and decide the risk is higher, they are allowed to increase your premiums. Insurers have considerable discretion to set their premiums. They cannot change the premium during the middle of a policy term or year, but may do so when it comes up for renewal.
You should try pricing out other insurers: another one may give you a better rate to switch to them.