White County homeowner still looking for answers over 308% insur - KATV - Breaking News, Weather and Razorback Sports

White County homeowner still looking for answers over 308% insurance spike

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 John Vaughn has found a new insurer, but he still wants to know what his former insurance company has to say about the way their relationship ended.

Last week John Vaughn shared with us how a $3,100.00 claim on his homeowner's insurance caused a massive spike in his premium.

 "I was expecting a rate increase of 10, 15%. Yeah," Vaughn told us. But what did he get?

 "308% increase," he said. And he said he got no advance notice.

  Vaughn's annual premium jumped from $2,000.00 a year to over $8,000.00. We asked the Arkansas Insurance Department if an insurance company has to give you notice prior to a rate increase.

 Arkansas law requires that "...the insurer shall give either a written notice of non renewal or an offer of renewal at least 30 days prior" to the expiration of the policy's existing term."

 Because Vaughn says that didn't happen, the Arkansas Insurance Department is investigating Progressive Insurance in regards to this situation. So the Department can't comment on Vaughn's complaint.

 But we asked another general question: Can a company raise your premium as much as it wants or is there a cap on annual increases?

 We're told there is no statute relating to caps, but companies generally limit increases in order to avoid complaints and the disapproval of a rate filing.

 We are waiting to hear back from Progressive. When we get a response we will add it to this story.

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