What are my rights regarding the insurance on my property?

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What are my rights regarding the insurance on my property?

A little over 2 years ago, my property was damaged by hail. I contacted the mortgage company who I had signed up for insurance with when I purchased the house. I went to contact the insurance company they reffered me too, and they had never heard of me or my property. This happened 4 times, with different insurance companies, making me think I never had insurance. It went on for over 4 months but finally they sent a company out that did an evaluation and sent a check. However, the mortgage company asked me to send the check to them and they applied it to the mortgage; there were never any repairs done to the property? Is that legal? I now have insurance but recently found out they have still been charging me for their own insurance over a year?

Asked on December 2, 2012 under Real Estate Law, Arizona

Answers:

MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

You need to file a consumer complaint with two agencies: your state's department of financial institutions if it regulates this mortgage lender and mortgage servicer (separate entities) or the Office of the Comptroller of the Currency if it is a national bank or the CFPB (Consumer Financial Protection Bureau). You also need to contact your state Attorney General and a third agency would be your state's department of insurance. Be persistent. Sounds like you have been defrauded and are due monies back. Further, it is allowable for a mortgage company to have the check but it should be releasing monies to you for repair, not simply applying the money to your mortgage debt.


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