I was contacted by my mortgage company by mail letting me know that they recieved a notice from my homeowner's insurance that my insurance has expired and they have purchased a policy for Fire/Homeowner Coverage ($16,000 yearly) for coverage and they are going to combine the policy with my already ridiculously high mortgage payment and I will have to pay the new amount beginning this month. Can they actually do that?
2007-05-01 09:03:47 · 4 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
Yes they can. One of the conditions of your deed of trust is that you will retain adequate fire insurance coverage on the property securing the loan.
Your alternative is to get yourself reinsured by the company of your choice at one so that you may cancel the expensive policy as quickly as possible.
2007-05-01 09:16:08 · answer #1 · answered by Anonymous · 0⤊ 0⤋
yes they can and will do this and if you ever have a fire the coverage they got only covers there losses not yours it will not cover anything except the loan on the property nothing of yours in the house will be covered
2007-05-01 09:14:29 · answer #2 · answered by gregs111 6 · 0⤊ 0⤋
Yes You have to insure the property. Get your own policy and have them cancel the one they "purchased"
2007-05-01 09:09:03 · answer #3 · answered by redd headd 7 · 0⤊ 0⤋
Sure can, and should. You need to provide them with proof of coverage.
2007-05-01 09:13:05 · answer #4 · answered by J M 4 · 0⤊ 0⤋