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Old 05-16-2018, 09:27 PM
 
20 posts, read 7,868 times
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I have filed 4 claims in the last 5 years. Now I am going to purchasing a new house, but no insurance company is willing to insure me. So I have to turn to NEw York Property insurance underwriting association.
Anyway, the lender’s homeowner insurance requirement is “cope of Coverage. Coverage must be at least fire and extended coverage with a "special form" coverage endorsement,
i.e.: fire only - DP1 or DF1, homeowners policy - HO1 (as opposed to "Broad" form - HO2 - except in Texas). “

Does it mean I need only HO1/HO2 to satisfy the lender? I have big trouble in getting HO3. NY Fair doesn’t provide liability.
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Old 05-16-2018, 10:36 PM
 
Location: Rochester, WA
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I don't know... I would ask your lender what will satisfy them.
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Old 05-17-2018, 12:07 AM
 
Location: on the wind
3,815 posts, read 1,421,538 times
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Maybe the nature of the claims you filed during those 5 years has come back to bite you. Don't know, so can't say. Maybe reviewing what your previous claims were might be worthwhile. For example, if you happen to be quick to file claims for minor things, that could make you less "attractive" as a policy holder. If you have a risky lifestyle (smokers who have started fires accidentally, hold big crazy parties, have big fish aquariums on the second story of your house, things that could result in big damage claims), maybe they won't want that risk.
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Old 05-17-2018, 07:07 AM
Status: "Aiming for the posthumous second star" (set 13 days ago)
 
1,441 posts, read 523,500 times
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The lender won’t care about liability. Just the perils insured against - they don’t want a “specified perils” policy.

See if you can get a DP-3 without the liability coverage.
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Old 05-17-2018, 07:29 AM
 
10,221 posts, read 6,369,371 times
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Quote:
Originally Posted by Crimson_flower View Post
I have filed 4 claims in the last 5 years. Now I am going to purchasing a new house, but no insurance company is willing to insure me. So I have to turn to NEw York Property insurance underwriting association.
Anyway, the lender’s homeowner insurance requirement is “cope of Coverage. Coverage must be at least fire and extended coverage with a "special form" coverage endorsement,
i.e.: fire only - DP1 or DF1, homeowners policy - HO1 (as opposed to "Broad" form - HO2 - except in Texas). “

Does it mean I need only HO1/HO2 to satisfy the lender? I have big trouble in getting HO3. NY Fair doesn’t provide liability.
I don't know if you had catastrophes happen in your home but that sounds excessive. My father has lived in his house 40 years and not filed one claim. It's a shame that you are penalized when you use it, but you are a risk to the new insurer. Maybe you should move to Florida we have a homestead rule and it's hard for anyone to take your home away even if you are found liable. Then get storm shutters to lower the hurricane portion of the insurance.
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Old 05-17-2018, 09:45 AM
 
28,371 posts, read 67,521,225 times
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I disagree about the "lender not caring about liability" -- the assumption is with a "normal risk" type borrower the lender is not going to have to worry about some sort of tragedy at the home resulting in a judgement against the homeowner. The OP does not sound AT ALL like a typical homeowner. Without knowing more details they might be far more unlucky than the typical homeowner, who won't make four claims in 30 years let alone 5 years. The lender very well could be worried that their "behavioral analysis / loss profile" software has flagged this borrower as the kind of person that is especially careless / borderline scam artist and they absolutely do not want a judgement that would impair the value of the collateral i.e. something that makes the home unsellable...

The OP needs to sit down with their real estate agent and get a referral to a real deal full service independent insurance broker and maybe a lawyer. The insurance broker can get a policy that will satisfy the lender, the lawyer needs to review it and make sure that all the I's get dotted and the T's crossed. The real estate agent should explain to any seller that the OP has had some insurance problems in the past and may need a longer closing period. The cost of the insurance is also likely to be higher and have long list of exclusions so the OP better have a really good understanding of the condition of the home and also needs a "wake up call" about how they got to this situation. I suppose it is possible to just have some really bad luck but my gut says at least a couple of those claims could have been avoided.

Some folks think "I'm paying all this money for insurance so I should file some claims to get value back". Unfortunately that is NOT how insurers view their role -- they exist to prevent CATASTROPHIC losses for the insured and anybody else with an interest in the property like lenders. The insurers expect NORMAL CARE to be taken by the insured -- that means they don't use blowtorches and gasoline to light fires for marshmallow roasts, they don't run commercial grade electric equipment with some field rigged bypass, they get their roofs and siding inspected well before any damage is made worse in a storm, they don't have parties where drunken guests crash through windows... In short all the stuff that they are having fun with in the Mayhem commercials and University of Insurance commercials is NOT supposed to happen.
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Old 05-17-2018, 11:58 AM
 
20 posts, read 7,868 times
Reputation: 19
It sucks. All these 4 claims were my neighbor's fault: their water pipes were broken three times, AC supply line has excessive water and damaged my house. Now it's me who has to suffer. Sometimes, life is not fair
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Old 05-17-2018, 07:23 PM
Status: "Aiming for the posthumous second star" (set 13 days ago)
 
1,441 posts, read 523,500 times
Reputation: 2788
You are turning molehills into mountains. The clause he quoted is very very standard pertaining to collateral protection requirements. Get a DP-3 and youre fine.


Quote:
Originally Posted by chet everett View Post
I disagree about the "lender not caring about liability" -- the assumption is with a "normal risk" type borrower the lender is not going to have to worry about some sort of tragedy at the home resulting in a judgement against the homeowner. The OP does not sound AT ALL like a typical homeowner. Without knowing more details they might be far more unlucky than the typical homeowner, who won't make four claims in 30 years let alone 5 years. The lender very well could be worried that their "behavioral analysis / loss profile" software has flagged this borrower as the kind of person that is especially careless / borderline scam artist and they absolutely do not want a judgement that would impair the value of the collateral i.e. something that makes the home unsellable...

The OP needs to sit down with their real estate agent and get a referral to a real deal full service independent insurance broker and maybe a lawyer. The insurance broker can get a policy that will satisfy the lender, the lawyer needs to review it and make sure that all the I's get dotted and the T's crossed. The real estate agent should explain to any seller that the OP has had some insurance problems in the past and may need a longer closing period. The cost of the insurance is also likely to be higher and have long list of exclusions so the OP better have a really good understanding of the condition of the home and also needs a "wake up call" about how they got to this situation. I suppose it is possible to just have some really bad luck but my gut says at least a couple of those claims could have been avoided.

Some folks think "I'm paying all this money for insurance so I should file some claims to get value back". Unfortunately that is NOT how insurers view their role -- they exist to prevent CATASTROPHIC losses for the insured and anybody else with an interest in the property like lenders. The insurers expect NORMAL CARE to be taken by the insured -- that means they don't use blowtorches and gasoline to light fires for marshmallow roasts, they don't run commercial grade electric equipment with some field rigged bypass, they get their roofs and siding inspected well before any damage is made worse in a storm, they don't have parties where drunken guests crash through windows... In short all the stuff that they are having fun with in the Mayhem commercials and University of Insurance commercials is NOT supposed to happen.
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Old 05-18-2018, 08:37 AM
 
10,221 posts, read 6,369,371 times
Reputation: 10770
Quote:
Originally Posted by Crimson_flower View Post
It sucks. All these 4 claims were my neighbor's fault: their water pipes were broken three times, AC supply line has excessive water and damaged my house. Now it's me who has to suffer. Sometimes, life is not fair
Why would you use your insurance for your neighbor's water pipes 3 times of the 4 claims?
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Old 05-18-2018, 10:50 PM
 
Location: on the wind
3,815 posts, read 1,421,538 times
Reputation: 13749
Quote:
Originally Posted by LifeIsGood01 View Post
Why would you use your insurance for your neighbor's water pipes 3 times of the 4 claims?
That's the question. If it truly was the neighbor's fault, their insurance should have covered your damage....if they HAD insurance of course. If you couldn't get satisfaction you would get your insurance company to go after theirs, but that isn't the same thing as filing a claim on your own for something.
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