Windstorm Insurance

[bcontent]

What is the name of your state? Florida

I have a question about the options an insurance company has if I do not have a windstorm policy. If I let it lapse, but continue to carry homeowner's liability insurance and continue to pay my mortgage and interest payment on time, what recourse does an insurance company have, if any, to force me to carry windstorm? Would they have to sue me and prove damages? What damages could they prove? Or would this be just an administrative action against me and if I refused to take out the windstorm insurance, could they send me to jail or take my house? Would they have to sue me in small claims court? Would this be considered a criminal matter and would I face arrest? I am considering a test case to see if this can be enforced and if so, how it would be done.

THank you for your prompt reply.What is the name of your state?

 

[tammy8]

I think your mortgage company might have an issue with it.

 

[bcontent]

Thanks for your reply. I know they will have an issue but what can they actually do about it? Would they have to sue me? And if so, what damages could they prove? My point is that they say I must have it but if I don't what is their LEGAL recourse? If they sue me for breach of contract, they would have to show damages but I can't think of any.

 

[Country Living]

The mortgage company will take out a single-interest insurance policy (their interest, not yours) and charge you for the substantially more expensive premium.

Or, read your contractual agreement with them to see if they could call your note. I realize you're trying to find a way to save money. It's a dangerous game you're trying to play while living in a hurricane prone state.

 

[bcontent]

If they called in the note, is that a unilateral move or would they be required to go through a procedure? Considering I have been paying religiously the P and I for over 10-years now. No one has really been able to answer my real question which is whether they must sue me to do anything and then show damages. Also, if they called in the note, Florida protects the taking of one's homestead, so I don't know how far they could go with that. A dangerous game perhaps but I am looking to try to set a legal precedent. That's what this is all about because the insurance companies have been getting away with murder and are in cahoots with the mortgage companies.

 

[tammy8]

Op you are so wrong cause this is exactly what they will do and you will pay out the nose for it. Read your contract cause you ARE required to carry what insurance they tell you to and windstorm and flood are things that can be required depending on the area you live it.

The mortgage company will take out a single-interest insurance policy (their interest, not yours) and charge you for the substantially more expensive premium.

Or, read your contractual agreement with them to see if they could call your note. I realize you're trying to find a way to save money. It's a dangerous game you're trying to play while living in a hurricane prone state.

 

[Country Living]

Have you asked your mortgage company if they will allow you to carry a higher windstorm deductible? Be careful about higher deductibles - you may get a whole less coverage for not much premium savings. It's important to get a quote first before you discuss a higher deductible with the mortgage company. They may say no if you can't prove you could cover the additional loss.

One other option is paying off the mortgage and then no one would require you to carry insurance of any kind. Foolish, but do-able.

 

[moburkes]

If they called in the note, is that a unilateral move or would they be required to go through a procedure? Considering I have been paying religiously the P and I for over 10-years now. No one has really been able to answer my real question which is whether they must sue me to do anything and then show damages. Also, if they called in the note, Florida protects the taking of one's homestead, so I don't know how far they could go with that. A dangerous game perhaps but I am looking to try to set a legal precedent. That's what this is all about because the insurance companies have been getting away with murder and are in cahoots with the mortgage companies.

Whether or not you make your house payments on time has nothing to do with this. In your contract you agreed to get coverage. They will, as you have been told, simply protect their interests buy purchasing a policy for you, and then charging you the premiums. It is much less expensive for you to purchase it yourself. In order for you to reject coverage, your mortgage company must agree.

And, the homestead defense if ridiculous - considering that you don't own the home yet. This is called foreclosure, and it happens in FL just like it happens everywhere else. Each of your mortgage lenders can foreclose.