Can my mortgage holder require to be included as a lienholder of my property in my home insurance?

Question

My 2nd mortgage holder wants to be included in the insurance of my condominium townhouse property. Is this legal or can I say no? What are my options? This was not mentioned before when the 2nd mortgage transaction was finalized. All townhouse units are insured through the condominium corporation.

Answer 1

confused homeowner, Home insurance covers lots of different things. I don't understand all the fine print of my home policy, but my homeowners insurance agent is always a phone call away. Try visting your agent or a agent in your town. http://www.easyhomeinsuranceguide.com They will be able to help you.

Answer 2

As far as i know,this is a question with many different answers,it is really depend on the judgement of yourself,provide a great resource here for reference though.http://insurance.online-frees.info/insur...

Answer 3

yes, it is legal.  Most of the time, all they want is a certificate sent to them.  They want to be listed on the master policy.  

If this is a condo, YOU are only covering the contents, meaning the mortgagee will request a copy of the master policy

If this is a townhome, you are insuring the structure and they can be listed as an additional insured, mortgagee, or 2nd mortgagee...hope this helps

Answer 4

They became a lien holder because you put your property up as collateral for a loan.

They HAVE to be listed on your homeowners policy.

If there is a claim, all mortgage companies will be listed on the check.

It's not optional.

You have to list them.

I see second mortgages on polices all the time.

The condo policy covers the out side of the unit. Their policy does not cover the interior of the unit and your mortgage company has an interest in that.

There is also a good chance that there is language in your mortgage that says you have to list them.

So, go ahead an give them your insurance info (agent name, phone and policy number)

You can also call the agent and give them the 2nd mortgage co info.

Answer 5

They ARE a lien holder. If your home burns down, they deserve to be paid just as much as your other lender.