What could my mortgage company do to me if I refused to pay my home owners insurance.
Free Insurance Quote Comparison
Secured with SHA-256 Encryption
UPDATED: Jan 6, 2011
It’s all about you. We want to help you make the right legal decisions.
We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.
Insurance Question from Fontainebleau, MS
Asked on 01/06/2011
What could my mortgage company do to me if I refused to pay my home owners insurance. NULL
Answer given on January 06, 2011
As a part of your mortgage you are required to carry homeowner insurance. If you let your homeowner policy lapse for non payment, the mortgage company has the right to place insurance with a company that they use and charge you for the premium.
If the mortgage company places insurance on your behalf, the premium is almost always 2 to 3 times the cost of the policy that you can obtain on your own. If you are unhappy with the cost of your insurance, you should shop around until you find an acceptable replacement. I do not recommend that you let the insurance lapse.
The mortgage company can also amend your loan to require that the insurance be in an impound account. this is an account that the mortgage company maintains, they charge you in your mortgage payment and then they pay the insurance company for the policy.
IMPORTANT NOTICE: These answers are for general information purposes only and are provided by the person answering and FreeAdvice.com AS IS. It has not necessarily been reviewed by the management staff of FreeAdvice.com nor is it binding any insurance agent, broker, or other insurance professional or any attorney or insurance company. Insurance laws, regulations and practices vary from state to state and insurance policies and practices differ from company to company, by type of policy, by state and locality and by type of insurance. Tiny variations in the facts, policy language or a detail not set forth in a question often can change the outcome or a professional's conclusion. Although FreeAdvice.com has confirmed that the answer(s) was/were provided for the account of an experienced insurance professional, that professional may not be licensed in the state referred to in the question, and may not be experienced or up to date in the subject area. Unlike the answers provided here, upon which you should NOT rely, for personal advice you can rely upon we suggest you consult a licensed insurance professional in your area or retain a licensed attorney listed on AttorneyPages.com to represent you.