Forced RETRO homeowners ??????

[1redhotcat]

Tamp Bay Florida.I have a current homeowners policy with Citizens yet during a period of tranisition from another company and being hospitalized for a few months in the past I was uncovered.Although my insurance coverage is current and has been for several months Wachovia has decided to retro me a policy and charge me for it.Is this legal????

 

[ecmst12]

Your loan requires you to have coverage - ALL the time. Yes, they can do this because your contract with them allows it.

 

[moburkes]

Tamp Bay Florida.I have a current homeowners policy with Citizens yet during a period of tranisition from another company and being hospitalized for a few months in the past I was uncovered.Although my insurance coverage is current and has been for several months Wachovia has decided to retro me a policy and charge me for it.Is this legal????

You agreed to this when you signed your mortgage. If you look at your policy, a claim can be made up to 3 years after the fact. So, the mortgage company is covering their interest in your property in case damage is discovered which can be traced back to that time period you were uncovered.

 

[Banned_Princess]

It is legal and always used when the Homeowner lapses coverage. It is also Extreamly expensive and only covers the banks interest.