Insurance Companies

We are closing on a loan. The mortgage broker now says that we have to pay homeowners insurance for a whole year up-front. We have had nothing but problems with this company. Before this he said we would have to pay the taxes and insurance for the remainder of the month we closed in. I think he’s being untruthful and is trying to make another $800.00 on the mortgage. I got a quote from my insurance company for $450.00 for the annual fee. I am also closing today the last day of the month…..whats up?
I live in Ohio!

I have never heard of a lender that didn’t require the entire insurance payment up front. The mortgage broker has no control of the Lender’s requirements. If you want to get a mortgage, you have to insure the property, and the Lender has to be added as an additional insured, atima (as there interest may appear).
Here is how it works: you pay the first year upfront, and then, the lender starts collecting your second year’s insurance payment each month with your mortgage and taxes, and it goes into an escrow account, two months after you settle. That’s if your lender is going to pay your insurance and taxes directly, which most do.

Your mortgage broker is also right that you have reimburse your seller for any taxes he/she prepaid for the time period you will own the home. Your tax clock starts ticking the moment the title passes. Settlement at the end of the month is smart, because you pay a little bit less in interest than you would if you settled in the middle of the month, for instance.
So far, everything your mortgage broker said is right. He doesn’t make any more money on the mortgage because you pay your insurance and taxes.There is no economic benefit to your mortgage broker for the settlement charges you incur. You should have received paperwork from the mortgage company that goes over all of the charges and fees they are charging. Insurance and taxes are not "fees" and they don’t benefit from your payment. You benefit, because you are paying for the property you are buying.
Your lawyer or realtor should have explained all of this to you, and should review every item on your HUD-1 when you settle today. You will see there is a place on the HUD-1 that reflects your insurance payment, and another place that reflects the taxes. Your HUD-1 reflects all of the financial transactions that occur for your settlement. Good luck in your new home. I hope this explanation helps.

I own a condo, and I asked my mortgage company how much condo insurance I am required to hold as a provision of my mortgage.

They stated that I must have enough to pay off the mortgage balance. This is COMPLETELY unreasonable. The condo association has insurance to rebuild the exterior (which was documented at loan closing), and a great deal of the condo value is the land. It would only take about 1/3 of the mortgage balance to fully rebuild the parts of the condo I am responsible for. If I carried that much insurance, the insurance company would never pay it anyway, even in a total loss.

Do I have any recourse for negotiating with my mortgage lender to allow me to carry less insurance?

–>Adam

Many Mortgage companies try this. I have found that when you actually sit down and go over a scenario with them, they sometimes wise up. Tell them that other companies take into acount the coverage of the master policy PLUS the land value. (if the building burns down, the land is still worth the same amount…) Your policy should only cover the replacement cost of the "drywall in" plus and additions or alterations you make.

on all application because of Storm Fay passing thru Florida, well Ilive in South Florida and the storm is right now on the north of Florida, from your experience, how long it takes for them to release the hold. The insurance company name is CITIZENS.

At the office I work at, we have nine home insurance companies and all of them are currently suspending binding new policies at this time. But just wanted to let you know you should shop around before deciding to go with Citizens. There are some companies still writing new business in South Florida and I am sure they could save you money. If you would like a quote, please contact the agency I work for in Tampa at 813-655-0910.

I have a HUGE dead tree on a hill behind my house (i just bought the place 3 weeks ago and did not see how bad it was b/c there was 3ft of snow on the ground). The roots on one side are completely exposed and the tree is 99% dead due to erosion from water running down the hill. Its seriously dangerous and could fall at any time. If it falls it will take out my ENTIRE house and likely kill anyone that’s inside. If i contact my insurance company would they be willing to take a pre-emptive strike and pay to have it removed so it doesnt fall on my house? I really cant afford the 4 grand that it’ll cost to remove it.

First of all they will not pay to remove the tree since that is considered to be a maintenance issue. In addition if they find out about the tree — and they might because they will usually do a drive by type of inspection within the first 30 to 60 days after they write a new policy — they will put you on notice to remove the tree within a specific amount of time or they will cancel your policy if you do not comply. If they cancel your policy due to the tree, it is very likely that you will not be able to obtain homeowners insurance with any other company until you remove the tree.

In addition if the tree were to fall onto someone else’s property or cause injury to a third party, you would be legally liable for the damage and depending on the amount of personal liability available under your policy, you could risk having a claim that could bankrupt you and or even result in garnishment of future income.

You will need to find a way to get this resolved asap! Call around and see if you can find anyone else that will give you a lower bid. My only other comment on this is to make sure that whatever contractor you choose to do this that you make sure that they have insurance — both Commercial General Liability (with a limit of at least $1,000,000 and naming you as Additional Insured) and Workers Compensation Insurance and that they provide you a Certificate of Insurance proving that they are insured along with a copy of their Contractors License.

I hope this information helps. Good Luck

I recently had an incident with my lawnmower starting a "leaf fire" while mulching leaves, the fire spread and my lawnmower exploded from the heat combined with the gasoline. I filed a claim with my homeowners insurance and they asked for information about the replacement costs of the mower/proof of invoices. Upon them receiving the information about the cost of a new replacement lawnmower, they immediately canceled my policy . Can I sue, how do I approach this matter?
The lawnmowers replacement cost was $4000+ that’s a decent loss for me.
Also, what the f you see k is the point in paying for insurance when they don’t cover you??? There should be a law that if an insurance company insures someone they should be legally required to insure…and not drop you because they don’t want to pay.

You can easily check your quotes in internet, for example here – homeinsurance.awardspace.us

Right now I am with Allstate and I am not happy with the service I am getting does anyone know a good company for homeowners insurance?

When you say you are not happy with the service you are getting, are you unhappy with the agent that’s servicing you or is it the company? Either way, you can change one or both.

Personally, I prefer State Farm due to their claim paying ability, their service (shop agents) and the coverages they offer.

USAA is another good company, but you must qualify and deal with them over the phone and internet only.

I’ve had my homeowners policy through 21st Century Insurance for several years now but I recently received a letter that my policy is now handled by Countrywide Insurance Services, Inc. Then , just a few days later someone showed up at my house and was taking pictures of it. I have uneasy feelings about this but I don’t know what to do. What would you do?

I work in the Insurance Industry. It is common for insurance companies to take photos. It really does help you in the event your home burns to the ground. There is then a record of what it looked like in their file. You can investigate an insurance company through a company called:

A.M. Best

This company rates the financial strength. Anything in the A range is good. I would stay away from a company lower than A.

Be as specific as possible, please.

Just as you would shop around for different cars or phone plans, you can do the same for homeowners insurance. Are you sure you have the cheapest premium? Do you have enough coverage? Take some time to look into other options when it comes to your premiums and companies.

Easy just "barrow" there mail.

You can easily check your quotes in internet, for example here – homeinsurance.awardspace.us