cancelled homeowners insurance

[dellaware]

i had bought a small house that was to be used for rental purposes and was separate from our residence as it was only in my name and not my husbands. I also had a different insurance company (mistake #1) than the one we have for our residence. We had a very busy and disruptive year at our home, and as a result the insurance premiums were overlooked and forgotten. The rental house burned, I called my insurance company and they told me they had cancelled me 6 months earlier. To my surprise. I started looking and found that they had mailed my husband the notices. So then I looked in the policy and it stated that the insurance company was to let the lender (the bank) know 10 days prior to cancelling our insurance. They did not let the lender know. I suppose I have no recourse on this - however, if this incourages anyone at all to double check on the status of their insurance before some disaster strikes, then writing this is worth it. So far I am left with nothing but a pile of bills. this is in MN.

 

[ALawyer]

I would not be so certain that you do NOT have a basis for a claim.

Failure to send the required cancellation notices -- to YOU as policyholder (if you were) and the bank (which ARGUABLY MAY HAVE LET YOU KNOW) may consistute an ineffective notice. Mucj depends on your state's l;aws and the insurance department regulations.

Contact your state insurance department ASAP, and maybe pay the $500 or so an experienced lawyer would charge for an evaluation -- it may save you 10-20 times that, or more.

 

[HomeGuru]

The reason that "let the lender know" clause is in the policy is to protect the lender and insurance company. In the event the homeowner does not pay, the lender has the opportunity force-place the required coverage.
This notice, I believe is more of a courtesy than a contractual requirement on the part of the insurance company. There was no defective notice with respect to notice to the homeowner policy holder. But depending on the applicable laws and the language in the insurance policy, there may not have been proper notice to the additional insured lender.
Follow the advice of ALawyer.

 

[CUDALIS]

First of all, how did your husband's name come into play, was the cancellation in his name? Seems strange. Other than that, check with the hazard insurance dept of your mortgage company, to see if they force placed a policy, upon notification of the cancellatiion. If they did not, they will (to protect their interests) a claim would then, be submitted to their carrier, and the loss paid, (only up to the amount of your mortgage) this is normally for structual damage-not contents. This, at least, is how it's done in New York. Good luck.