What to do if my mortgage lender failed to pay the premium on time for my condo HO6 insurance policy?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
What to do if my mortgage lender failed to pay the premium on time for my condo HO6 insurance policy?
The money was available in escrow. The insurance company terminated the policy immediatly after the premium due date passed. Is there a mandatory grace period that insurance companies are required to provide when a premium is being paid by the mortgage company?
Asked on June 28, 2013 under Real Estate Law, New Jersey
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 10 years ago | Contributor
No, unfortunately there is no mandatory grace period--the insurer is entitled to be paid on time, no matter who is doing the paying. You may be able to sue your lender for any additional costs or other losses you suffer due to the termination of your policy because of their failure to pay, if they do not voluntarily compensate you.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.