partial coverage

[scottbell]

What is the name of your state? MA

Hi,

I posted a while back about problems I was having with a garage that my ins. co will no longer cover. Instead of having them cancel my entire homeowner's policy they suggested that I just restrict coverage on the garage. I understand that during the time that it isn't covered I will be legally exposed, but I am wondering if there will be some problems with MA law or my mortgage company if I have partial coverage until the garage is demolished. I'm not sure if this is the correct forum for this type of question, but any insight will be appreciated.

Thanks,
Scott

 

[seniorjudge]

You need to talk to your mortgage company.

 

[moburkes]

Before that, you need to make sure that your insurance company will exclude the garage. Most will not.

 

[scottbell]

My ins co suggested that I do so, well the customer service people I spoke to and the inspector. I realize that they might not have the final say.

I did however contact my mortgage company and they said it would be ok as long as the principal amount I am covered for doesn't decrease. If it does they would force insurance on me. I'm not sure if that would be for the 20k difference or for the entire amount of the principal. I then asked my ins co and they said it would remain the same because my garage is not attached to the house.

 

[moburkes]

My ins co suggested that I do so, well the customer service people I spoke to and the inspector. I realize that they might not have the final say.

I did however contact my mortgage company and they said it would be ok as long as the principal amount I am covered for doesn't decrease. If it does they would force insurance on me. I'm not sure if that would be for the 20k difference or for the entire amount of the principal. I then asked my ins co and they said it would remain the same because my garage is not attached to the house.

I haven't seen an insurance company offer an exclusion for a coverage that is listed on the declarations page, and takes up 1 page in the policy book. That seems like a huge liability to me. However, it will be up to the underwriter, not the CSR or the adjuster. But, I'm going to guess that, since they both suggested it, that it is an option.
I'm not sure what the "it" in your last statement refers to (in case you were asking another question).

 

[scottbell]

What I meant was, if the coverage does decrease due to the restriction my mortgage co would force insurance on me. I wasn't sure if it would be for the difference or full amount. It might be another question for my mortgage co.

 

[moburkes]

What I meant was, if the coverage does decrease due to the restriction my mortgage co would force insurance on me. I wasn't sure if it would be for the difference or full amount. It might be another question for my mortgage co.

Coverage A won't change. You just won't be able to extend 10% of Coverage A (dwelling) to Coverage B (garage). The premium may not change, though.

 

[scottbell]

Thanks for your replies seniorjudge and moburkes. I appreciate it.

 

[tammy8]

Make 100000% sure with yoru agent before you except this as truth. Then make them give you proof from the underwriters this is also true! I have never heard of anything like this in 13 yrs of being in the business.

Why don't you just take down the garage?

 

[moburkes]

Make 100000% sure with yoru agent before you except this as truth. Then make them give you proof from the underwriters this is also true! I have never heard of anything like this in 13 yrs of being in the business.

Why don't you just take down the garage?

Agreed. Sending you a PM.

 

[scottbell]

I am planning on taking down the garage, but I don't think it can be done before my caneclation date of 3/11 due to the weather. In the meantime, I don't want to lose my entire policy because of it.

As for being certain about the restriction I can't really say I'm certain about anything at this point. (besides I need to knock this garage down) I've talked with my insurance co who suggested that I restrict coverage on the garage. They told me I need to revise the policy with my insurance agent and give them the change in writing. I spoke to my insurance agent who said that it was a form I needed to fill out and the process would take a couple of days.

In the meantime, I'm requesting an extention from my ins co (which I was told by a CSR I wouldn't get) and searching for a demo contractor that can do the job.

Is the insurance underwriter with my insurance company or insurance agent?

 

[moburkes]

I am planning on taking down the garage, but I don't think it can be done before my caneclation date of 3/11 due to the weather. In the meantime, I don't want to lose my entire policy because of it.

As for being certain about the restriction I can't really say I'm certain about anything at this point. (besides I need to knock this garage down) I've talked with my insurance co who suggested that I restrict coverage on the garage. They told me I need to revise the policy with my insurance agent and give them the change in writing. I spoke to my insurance agent who said that it was a form I needed to fill out and the process would take a couple of days.

In the meantime, I'm requesting an extention from my ins co (which I was told by a CSR I wouldn't get) and searching for a demo contractor that can do the job.

Is the insurance underwriter with my insurance company or insurance agent?

Generally, you'll NEVER speak with the underwriter. Ask the agent if you can come into his office for the form, if its online, or how you can get it sooner. Otherwise, even if it takes a week or 2, you still have time to sign it in order to secure coverage.

 

[moburkes]

Today, 01:04 PM
scottbell
Junior Member Join Date: Oct 2006
Posts: 13

garage problem

--------------------------------------------------------------------------------

I hope you don't mind the PM.

I was a little confused by your last response. Are you suggesting that I fill out the forms immediately in case the process extends beyond my 3/11 deadline?

No. I'm just saying that, as long as the insurance company receives the forms by the renewal date, they should have no problem reinstating coverage without a lapse, but excluding the garage. But, like tammy and I said earlier, I've never seen this happen.