House Insurance Brokers
Do I need House Insurance?
I have done my closing on my new home and my move in date in 10/11/07. My broker/realtor put on the settlement paper that I had already paid for insurance on the house, I guess from now to December. He basically lied so that I won’t have to pay anything on the closing day. He told me to get in contact with the insurance agency so that I can set up a payment arrangement. Should I not pay it? What will happen? Will I get in trouble with the gov’mt?
Hazard Insurance is a REQUIREMENT of the lender, and there is no “lying” to it..the loan processor MUST have verification directly from the insurance carrier of CURRENT coverage in place, or the loan WILL NOT CLOSE.
I will guarantee it. It must be insured the day of closing and must be in effect for a minimum of 6 months.
Insurance companies are REQUIRED to notify the mortgage company if you don’t pay your insurance, and there will be documents that you will sign at closing, if at any time you don’t pay the premium, the lender has the right to put forced lender insurance on your property…and the premiums are usually 4x what you would have had to pay on your own, and if you don’t pay it, they will foreclose.
Go to an insurance carrier, get it in place, and save yourself a headache. Your Realtor/Broker is an idiot.
