Two Ins policies

[Linda Beatte]

What is the name of your state? Missouri
My son had a homeowner insurance policy on his property, and the mortgage company had forced a policy on him also even though he had sent them proof of insurance. His house burnt, losing every thing. The insurance he had paid off, including his loan. Doesn't the insurance company that the mortgage company purchased for him have to pay also? In turn, doesn't the mortgage company owe the payoff back to him? If so what does he need to do to collect this money?

 

[Beth3]

If your son has been compensated fully for the extent of his financial losses, then it's unlikely he'd be due anything further from the other carrier. However we don't know the provisions are of the insurance policy the mortgage underwriter insisted he purchase. Perhaps it's only disability insurance - i.e. it will pay his mortage if he becomes disabled.

In any event, if your son has been compensated, then the issue is really between the two carriers. The carrier who paid may choose to subrogate all or part of their losses against the other carrier if they have any liability, which has nothing to do with your son.