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Thread: homeowners insurance

  1. #1
    New User Level 0
    Join Date
    Feb 2012
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    3

    Default homeowners insurance

    My mother holds the mortgage on a property. At the beginning, the buyers purchased homeowners insurance. For years now, they have not had it. Unfortunately, my mother has not asked for a copy of it on a regular basis. So she only recently found out they do not have it.
    What are her options? Can she force them to get homeowners insurance? I'm assuming that if it was written in the original paperwork that the buyers had to have insurance, then I feel certain she can require them to get it. But I do not know the details of the sale. So for information purposes, let's say it does not mention anything about homeowners insurance in the original paperwork.



  2. #2
    Member Level 0
    Join Date
    Apr 2011
    Posts
    51

    Default

    Long ago banks attempted and were unsuccessful forcing a home buyer to maintain insurance on the home. To resolve this problem the insurance companies offered banks a insurance policy that would insure homes when the home buyer failed to provide proof of insurance. The bank's insurance coverage is vastly different from the insurance coverage in a policy that the homeowner purchases. Also, the bank's insurance policy is very expensive. The bank is able to pass the cost of their insurance to the home buyer by adding it to the loan payment since the bank has a written agreement with the home buyer.

    Therefore, your mother would have to purchase insurance and seek reimbursement from the buyer.

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