Posted on: 27th Oct, 2009 10:25 am
Hello,
Before I close my financing, FHA required from me for a HO-6 insurance.
I've contacted an Insurance broker introduced by my loan broker.
She gave me a price of US$400.00 for this insurance but today, I received the policy from Citizens Insurance asking me to pay more US$266.00.
My question:
If I cancel the HO-6 insurance will I have any problem with FHA or something? I just contacted this insurance because was FHA mandatory.
Before I close my financing, FHA required from me for a HO-6 insurance.
I've contacted an Insurance broker introduced by my loan broker.
She gave me a price of US$400.00 for this insurance but today, I received the policy from Citizens Insurance asking me to pay more US$266.00.
My question:
If I cancel the HO-6 insurance will I have any problem with FHA or something? I just contacted this insurance because was FHA mandatory.
Hi fabianoporta!
Welcome to forums!
The HO-6 condo insurance will help you cover losses to any of your personal property or any structure that you own. If you plan to change your insurer, you should inform the lender about it. If he has any objections to it, he would let you know.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
The HO-6 condo insurance will help you cover losses to any of your personal property or any structure that you own. If you plan to change your insurer, you should inform the lender about it. If he has any objections to it, he would let you know.
Feel free to ask if you've further queries.
Sussane
Hi, I am not sure if the question is actually answered. What is the consequences of canceling the HO-6 insurance?
Hi jmoe!
Welcome to forums!
If you cancel the HO-6 condo insurance, then you will have to pay for the losses that your property suffers in case of any disaster.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
If you cancel the HO-6 condo insurance, then you will have to pay for the losses that your property suffers in case of any disaster.
Feel free to ask if you've further queries.
Sussane
I have H)-6 insurance ..I had a flood in my apartament and the adjuster for the insurance said that the drywalls and vanity is no cover by this insurance that is cove rby the association insurance??? I don't think so but let me hear from you..
thansk
thansk
Hey Carolina... It may happen that your insurance policy does not give you the coverage for drywalls and vanity. If you have an association insurance, you can contact them and get the insurance checks.
Hi, I think I wasn't completely clear. I have a master insurance that states it has "walls-in" coverage. Though my mortgage lender "forced" me to get H0-6 anyway. (They threatened to not let me close).
My question is in regards to what kind of action can the lender take against me if I do not renew my H0-6?
Thanks.
My question is in regards to what kind of action can the lender take against me if I do not renew my H0-6?
Thanks.
Hi jmoe!
Welcome to forums!
If you do not have the HO-6 insurance coverage, you would lose the protection that you receive from it. As far as I know, the condo owners will need to maintain HO-6 insurance once they take out a mortgage. In the lender finds that the borrower can't maintain such policy, then he would force-place it.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
If you do not have the HO-6 insurance coverage, you would lose the protection that you receive from it. As far as I know, the condo owners will need to maintain HO-6 insurance once they take out a mortgage. In the lender finds that the borrower can't maintain such policy, then he would force-place it.
Feel free to ask if you've further queries.
Sussane
I have the same question. I have also been forced by my bank to obtain HO-6 insurance. I have prepaid for a year. Once the loan is granted, at the end of the first year, is there any way the mortgage company would know whether this insurance lapses? Assuming that I let it lapse, would it matter enough for them to make any demands in the future?
Welcome David,
As far as I know, the lender may come to know if your insurance lapses. If you don't pay the insurance, then the lender might place a HO-6 insurance on your behalf from his end.
As far as I know, the lender may come to know if your insurance lapses. If you don't pay the insurance, then the lender might place a HO-6 insurance on your behalf from his end.