I just learned that my homeowners insurance policy has been cancelled as of June 2010. I have been with the same insurance agent for 7 years. Last year my mortgage was sold to BOA and alot of things went missing during the transition. Apparently my homeowners policy was written for the incorrect address. When the bill came due BOA did not pay. A cancellation notice was mailed to me at the address on file (which is an incorrect address). My bank did not notify be that we were uncovered and neither did my agent. So now we are unable to obtain a new homeowners insurance policy because of the lapse. We are required by our lender BOA to escrow so we were under the impression that the insurance was being paid. Do we have any options at all?? This is really unfair.
2 Answers from Attorneys
Rarely will a lapse be the sole reason for being uninsurable. Most likely, there are other reasons but you omit the details of what has happened when you have applied for insurance. You also don't tell us what happened when you contacted your agent or agency, with documentation, to discuss the issue, including the incorrect address. The details are important, but you leave us to guess. So, the bottom line is that you need to be insured so go out and get insurance ASAP if you have not done so. You also completely fail to tell us what happened when you contacted BOA to discuss it. Complaining about something being unfair is not a reason to not get on the ball, or risk your house and property.
A lapse is your responsibility. Even with an escrow it is your job to make sure your insurer has correct addresses and that the premiums are paid. Your lenders only job is to pay the bill when you get it to them. You failed to do that.
It should be easy to get it reinstated. Call your agent and have them send a bill to BOA.