Return premium home insurance

Return Premium — the amount due the insured if the actual cost of a policy is less than what the insured has previously paid—for example, if the limits are reduced, the estimated exposure at inception is greater than the audited exposure, or the policy is canceled.

Why did I get a return premium check?

Upon cancellation of an insurance policy prior to the expiration date, the unused portion of the premium is returned to the insured. A return premium can also be made for an overpayment or as a result of reducing your coverage.

How is return premium calculated?

A return premium factor is calculated by taking the number of days remaining in the policy period divided by the number of total days of the policy. This factor is multiplied by the written premium to arrive with the return premium.

When can premium be refunded?

The law allows the policyholder to have 15 days as the free-look period from the date the policy document is received. During this duration, the policyholder is entitled to cancel the policy and get a refund.

What does unused premium mean?

Unused premium means premium for the days you have paid for, but will not be insured (calculated as at the effective date of cancellation).