Do I have to pay my lender for an insurance policy that they never got if I let my homeowner’s insurance lapse?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Do I have to pay my lender for an insurance policy that they never got if I let my homeowner’s insurance lapse?
By mistake I allowed my homeowners insurance to lapse and now the mortgage company wants to back charge me their fee to insure the home for the 3 months it was not insured. I know I agreed to this in the mortgage, however if they not even purchased a policy yet how can they charge me for an insurance policy that does not exist. I have coverage now and is there anything I can do to fight this?
Asked on September 16, 2011 under Real Estate Law, Florida
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
If your mortgage company paid for homeowner's insurance for your property due to the fact that you let it lapse by mistake, under the mortgage in place, the lender most likely had the right to place insurance on your property. If the lender wants reimbursement for its expenditure for this, you need to ask for a copy of the policy it placed and copies of documents showing that it in fact paid the premiums for this policy.
Unless the lender can demonstrate that it actually paid the premiums for this insurance to you, you should have no obligation to make any payments to it for it. You should also ask for a copy if the policy of insurance for your records allegedly placed by the lender.
Good luck.
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.