Legal Question in Insurance Law in Georgia

My home owners insurance was cancelled 2 years ago and my insurance claims that they notified me, so they are not at fault. It was dropped when my mortgage was sold to a new company and no one did anything about it and we didn't know it was cancelled. The mortgage company claims that they can force us into a lender provided policy and force us to pay for the 2 years that we didn't have insurance, there were never any claims during those 2 years. Can they legally make us pay for 2 years worth of insurance over the next 12 months?


Asked on 7/11/11, 6:20 pm

1 Answer from Attorneys
Glen Ashman Ashman Law Office also dba Glen Ashman Attorney

It is completely your fault and you have learned an expensive lesson. Regardless of whether you saw paperwork or not, you as a homeowner are responsible for insurance, and when you didn't see a renewal letter you should have called. That is what you have to do as a homeowner. You also, unless you simply ignore mail from your bank, had to not look at the annual escrow statement that showed nothing paid for insurance, and never bothered to ask your bank. So you had notice there as well. You chose not to stay on top of your affairs. And it cost you dearly.

Yes, you owe the bank, and you're lucky you had no claims. And you need to get proper insurance. Your loan papers you signed at closing stressed that. I gather you chose not to read them. Get insurance as soon as possible as it will be cheaper than the bank's. And note that the bank's insurance ONLY protects them and pays you zero for a claim.

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Answered on 7/11/11, 6:28 pm


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