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We are moving to a home that has been vacant for a long time. My mom was paying the insurance through the mortgage company. Then she got a letter saying that the Fire policy is expired, even though she has been paying the mortgage co. all along. The original homeowners insurance co. stopped covering because it was vacant. We are having workers in for plumbing etc. and hope to move in in three weeks. I'm freaking out about not having this insurance. Is this a mistake? Why would the mortgage co. let the fire policy lapse? Any insight or advice?
Homeowner's insurance doesn't cover houses when they are vacant. You have to get a separate policy to cover that - and that's true even if you are just moving out of your house for a couple of months during a major remodel.
The mortgage company didn't let the policy lapse - the homeowner did. It's pretty important to actually read the insurance documents rather than just filing them.
Your best bet is to call your insurance agent for what you can expect. If you don't have one, you're going to need one anyway so it's a good chance to meet one.
the HOI will probably not renew it as a regular insurance policy when they find out that the owner isn't occupying the residence.
There are other forms of insurances that can cover the property...
She will need to call her Ins Agent.
Also, most lenders will require INS to be on the property. They can impose their own insurance company, and their costs are double the amount she was paying.
That is what is confusing, my mom was paying ins through the lender, and is, so how could it lapse? Makes no sense to me, but just got a ref to a great agent in the area so hopefully will get resolved asap! Thank you to everyone with the good advice!
You need to call your LENDER first. If she is escrowing her payments to them they are responsible for getting the policy paid. She needs to find out what is going on there. It is very possible it is just a misapplied check.
Are you buying the house or renting it from your mom? If you are renting it she can get a homeowners policy through a traditional insurance company to cover the home and then you should get a renter's policy to cover your stuff. If you are buying the home you can get a policy in place NOW through your insurance company and they will put a endorsement on it for a home under construction. The coverage is slightly different but it will still cover the structure of the home. The most important thing is to do this TODAY.
Well….I think if you wait for some more time… you can get a lot better suggestions that this…I am out of any ideas for this!!!!
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