What to do if my mortgage lender failed to pay the premium on time for my condo HO6 insurance policy?

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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 8 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.


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