Home Insurance- Confused/Stressed Need Help!

[Anonymous]

What happens if you do not have mortgage insurance, 1 year later after closing on a fha home loan? I have insurance but they are not going to renew it next month because i didnt make a repair( i have a claim open with them now) which is preventing me from getting other home insurance.

fyi--  I closed on my home ith insurance,  3months later i got a letter from insurance company asking me to make a roof repair.....( My fault for waiting until now to care)...But 2 weeks ago they sent letter saying my insurance would not be renewed next month if repair  wa not done(around 4,000)...I put in claim with them because i figure i had insurance with them, and it wasnt until 3 months later they ask me to do repairs..(im new to all this so, maybe im wrong)...I was looking for new home insurance , and they will not insure me while claim is open with current company.....My main question is what will happen  with my home loan, will BAC foreclose or do something like that because of this, I will still be making payments... And i do want insurance , but i dont want to call my current insurance company and ask them to close claim so that i cant get another insurance company....Im confused and dont know what to so, please help me.

[MarineVietVet]

I was going to give a few comments and/or suggestions but then I realized this is way out of my comfort zone and I will wait for the real experts to come along and educate both of us.

From a BK years ago to:
8/09 TU-765 EQ- 783
9/09 EX pulled by lender 802
3/10 EQ- 800

You can do the same thing with hard work

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[Anonymous]

Why did the insurance send you a letter requiring the repair done?  If it needed done, and was not some sort of accident, they are not going to cover it or repair it for you.  They probably set up your policy initially (at least from what I gathered) and then upon closer inspection found an issue that needs to be fixed for them to be willing to continue the liability (i.e if the roof is bad, they do not want to be liable for any damage claims down the road).

As far as BAC, if your insurance lapses, they will send you a warning letter, and then they will purchase outside insurance and bill you for it.  It will be very expensive.

[Anonymous]

ALso, home insurance does not cover repairs.  Call them and cancel your claim.  It is only going to hurt you down the road.    Insurance handles damages due to stuff that happens.  (think water line breaks requiring repair, etc   not wear and tear/maintenance). 

[Anonymous]

last note, just for example.  I had a similiar situation with BAC last year when they took over our loan from TBW.  Our insurance that we had paid into all year was never paid prior to TBW filing BK so our insurance lapsed for a couple days.  BAC sent us a letter and I took care of it.  In the meatime, though, theys ent me a quote from their insurance provider and it was 400% higher than what I have now....from $50 per month to $200......

[MarineVietVet]

Mickie what a coincidence. That's EXACTLY word for word what I was going to say.   

[Lel]

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@Anonymous wrote:

fyi--  I closed on my home ith insurance,  3months later i got a letter from insurance company asking me to make a roof repair.....( My fault for waiting until now to care)...But 2 weeks ago they sent letter saying my insurance would not be renewed next month if repair  wa not done(around 4,000)...I put in claim with them because i figure i had insurance with them, and it wasnt until 3 months later they ask me to do repairs..

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I'm a bit confused about the timeline that you've laid out here.

You state that three months after closing, your insurance company informed you that you had to fix your roof.  But you also write that you filed a claim, and 3 months later they asked you to make the repair.

Are you saying that almost immediately after closing, you filed an insurance claim?  That's what is implied by what you've written.  If so, then this would be a huge red flag to the insurance company.  What was the nature of the damage to the roof?  Was there a storm that resulted in sudden and unexpected damage, or were there deficiencies with the roof even before you moved in (i.e. shingles wearing out, leakage around the roof flashings, etc)?

If the nature of the roof damage is the latter - related to normal wear and tear that occurred before you occupied the house and before the insurance company assumed liability - then the insurance company will argue (with good reason) that they're not responsible for the repair of this damage, because it didn't occur while they were insuring the house.  Think of it another way - if someone bought a car at a salvage auction, do you think the new auto insurance company would pay a claim to restore the car?

If the assumptions above are correct, then you're in a tough spot.  You may have no recourse but to pay for the repair and renew your homeowners insurance.  If you don't then like mickie said your lender is going to obtain insurance on your behalf, and they're not going to shop for the best rates.  It could end up costing you more than the repairs.  And the thing is, with the existing damage to your roof, the new insurance company won't pay for the repair either, and could very well demand the same repairs as your current insurance company.

[Anonymous]

No, I did not file a claim after closing.   I filed a claim  this past week after I had a roof repair guy come in inspect. ... Hail damage... How can the insurance company not be liable if i have had insurance with them this past year, for any hail damage that has occured while being insured with them?  I also had a licensed inspector look at roof as well before i closed on home, no issues other than a few nails that needed to be replaced that where..

[Anonymous]

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Your writing is ALL OVER THE PLACE, your omitting important facts and it's very confusing. I initially thought you were talking about your mortgage insurance and now I believe your talking about your homeowners insurance? You also left out the hail damage in your initial post. Does the roof need to be replaced because it's old and leaking or is it due to hail damage?

If you want help and advice I suggest you take a breath, think about what you want to say and spend some time articulately writing it so that it's coherent and easily understood. The only way we can help is if we fully understand your situation. 

[Anonymous]

Ok, Im talking about Home Insurance. (i had to look up the difference)I just want to know, if they should be paying for repair/replacement on a claim I submitted for hail damage that has occured while being insured with them. Even if they did tell me to repair part of the roof before I submitted my claim for hail damage.. And there are no leaks, only noticable hail damage that the roof guy found..... Also now that you know im talking about home insurance, does the responses above still apply?BAC will purchase high home insurance ?