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We bought a house in Seabrook Beach a year ago. The mortgage got sold and the new lender is being a PITA about everything. Now they are saying we are required to have wind insurance. I can't find this to be a requirement anywhere except the gulf coast. Is anyone familiar with this?
Windstorm insurance (more commonly known as tornado insurance) is rare in NH. Sadly, the average tornado insurance policy costs twice as much as a regular homeowner policy.
It exists to supplement normal homeowner's insurance. It's for property coverages that the insurance company will not cover. Insurance companies do not cover Acts of God....or Mother Nature.
Earthquakes are another specialty insurance deal. Most policies don't cover earthquakes or floods.
All flood policies are run by the government...and are administered by private insurance companies. Taxpayers subsidize the flood program thereby keeping the premiums lower.
in your case they want you to insure the house in case of hurricane force winds... this is a requirement in South Florida for properties that are within a mile or two of the coast. Sounds like a knee-jerk reaction because of the whole Sandy Storm in NJ.
Just glimpsing through many articles online and it appears that residents of the southern states are choosing to drop wind insurance from their policies. It's extremely expensive since Katrina - costing thousands per year.
Maybe you can shop around for a new mortgage holder?
We bought a house in Seabrook Beach a year ago. The mortgage got sold and the new lender is being a PITA about everything. Now they are saying we are required to have wind insurance. I can't find this to be a requirement anywhere except the gulf coast. Is anyone familiar with this?
We do have homeowners and flood insurance.
Doesn't your homeowner's insurance include windstorm damage? If so I can't understand why your lender would request that you have windstorm insurance- as a separate policy? Perhaps if your homeowner's policy includes windstorm coverage you can provide that information to your lender and that will be it.
I don't know about other areas of the country, but we lived for years in Miami-Dade County in Florida, in an area ( east of I-95 or US 1) where the insurers who didn't flee the state after Hurricane Andrew in 1992 (or came in later) would not provide windstorm coverage on their homeowners' policy. We had a homeowner's policy with State Farm, and while they continued to provide us with homeowner's insurance, excluding windstorm damage. We had to purchase a separate windstorm only policy, which was prohibitively expensive and rising every year, from the quasi-governmental entity known as Citizen's Property Insurance, for that house.
I don't know if insurance companies have done this in your state, but looking at your policy, possibly calling your insurance company to clarify any confusion about your policy, and/or calling your lender to see what they're looking for may help you to make sense of this.
I believe that homeowners insurance doesn't cover "acts of god", such as hurricane or tornado damage.
Mortgage lenders have always been concerned over their mortgages notes on seaside dwellings. I think that the Hurricane Sandy devastation really shook them all up over their Northeast real estate holdings.
We had State Farm insurance on our home in Homestead, FL when Hurricane Andrew struck So Fla. Our home was destroyed by a tornado and got washed out to sea. Our car was found in the ocean off Naples - a hundred miles away! The company paid off on it about four months later - thankfully it was paid off otherwise we'd have been in deep krap. We kept the lot and just sold that a few years ago for much more than we paid for it. Our homeowners insurance included wind and we bought a hundred dollar flood policy the year before.
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