Question
Home owners insurance dropped?
What would happen if you home owners insurance drops your policy and you have a mortgage on your house? For example, the home we have a contact on has a questionable roof (wood shingles under composite which is hard to find an insurer, at least here in Oklahoma). The insurance will write the policy based on a report by a roofer of your choice and then AFTER the closing they will come and do an exterior inspection of their own. If they decide to drop the policy does your mortgage company find someone willing to insure the home????
1 month ago - 2 answers
Best Answer
Chosen by Asker
Well, you will have 30 days to hustle and find a replacement policy to satisfy the mortgage. The mortgage company will NOT find someone willing to insure the home. What they will do, is put "forced placement" coverage on the house, and bill you for it. It costs about 10X as much as regular homeowners, and will NEVER PAY YOU. It won't cover YOUR STUFF, or YOUR LIABILITY, and won't PAY TO FIX YOUR HOUSE. It will only ever pay the bank, and it will only PAY the bank, AFTER your house gets foreclosed on and sold at auction - ie, after you LOSE the house. If you don't pay the extra $300 a month or however much it is, they will foreclose on you. So do NOT rely on the mortgage company's insurance to do ANYTHING for you - besides make you broke, because it costs WAY MUCH.
by mbrcatz
1 month ago
Asker's Rating: 
Other Answers
Its up to you to find another insurance company willing to offer you insurance. Good luck!
by James- 1 month ago