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unreasonable mortage insurance requirements

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panzertiger Joined: 27 Sep 2010 Posts: 1 1.49 Dollars($)	Posted: Mon Sep 27, 2010 9:45 pm    Post subject: unreasonable mortage insurance requirements Like 0 Dislike 0 I am in California. My family and I own a 12 unit apartment building. We had this mortgage at least 8 years. Recently Wells Fargo took over the loan. I just gotten a letter from them saying the insurance that we are require to maintain the loan is missing "workman's compensation" The problems is that we don't have any employees. And workman's compensation is to insured against injuries for employees. The things that worries me about this issues is that we just have gone through a series of to unreasonable insurance requirements for this new lender. My questions is can a lender impose unreasonable insurance requirements. In this cause I look at the loan documents. It only requires me to have all-risk policy insuring against loss or damage by fire an other risks or hazards" and "general public liability insurance". I did a little research (correct me if I am wrong) but in the insurance industry these policy do not include "workman's compensation" . So the loan documents does not say I have to have workman's' compensation insurance. Also I believe we are in compliance because when we purchase this property 8 years ago. The original lender send insurance instructions to escrow. And this is the policy that they approved. What recourse do I have if the mortgage company keep saying I need more and more insurance. What legal course do I have? Is there a government agency I can get help from?
jerry Moderator Joined: 17 Oct 2005 Posts: 2708 Location: MICHIGAN 429.63 Dollars($)	Posted: Tue Sep 28, 2010 3:34 am    Post subject: Like 0 Dislike 0 Hi panzertiger, As far as I know, the lender cannot impose unreasonable insurance requirements. You should check your loan documents carefully in order to find out what insurance you need. Depending upon that, you can contact an insurance agent and go for the required policies. You should show your loan documents to the lender and let them know that you don't need a workman's insurance. If you want to take a legal action, then you need to contact an attorney for the same. Thanks, Jerry

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