Posted: Wed May 13, 2009 2:16 pm Post subject: mortgage company forces more insurance.
can a mortgage company force you to add additional sink hole coverage in florida when the home already has 24 pressure piers under a 1200 square foot home, we already have catorstrophic sink hole coverage. now they want us to have more, when the work was garrenteed regarding earth movement. thanks
The mortgage company cannot force you to buy additional insurance. But if the situation demands you to have an additional coverage of insurance, the lender may force you to have that because the property is a security against the loan. The lender would obviously want to have it secured in all possible ways so that the mortgage lien can be satisfied by selling the property if you fail to repay the loan. You can check with other lenders whether they would also like you to have that extra insurance cover for the property.
jerry
