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Ellen, Lawyer
Category: Real Estate Law
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Experience:  25 years of experience helping people like you.
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my mortgage company now chase has billed me for windstorm insurance

Resolved Question:

my mortgage company now chase has billed me for windstorm insurance due to my coverage lapsed because i never got the renewal notice in the mail
I was notified by the bank that the coverage had lapsed and due to the citizens insurance company delaying the renewal because they are trying to get out of wind insurance in Florida I lost 30 days of coverage. On my mortage statement Chase has charged me 51,000.00 for this coverage which i renewed for under 6,000.00. NOw i see the 51,000.00 has been reduced to 15,359.85 for the amount of time i was not insured. Citizens has a roll here also .I have been told by my broker that the policy actually expired in Feburary but Citizens never sent renewal notices out. They finally did in May which i never received. i finally was able to renew in June. The bank is charging me for the coverage missing from Feb to Feburary 12. I have several issues about this charge. 1, the months of no coverage arent hurricane months, 2, the cost of the insurance
Submitted: 7 years ago.
Category: Real Estate Law
Expert:  ScottyMacESQ replied 7 years ago.
So Chase is charging you over 15,000 for 30 days of coverage?
Customer: replied 7 years ago.



No the 15,000 charge was based on the policy lapsing on Feb 7 even thoug Citenzens never sent renewals out until May which i never received. When i recevied notice from chase I called my broker and they had a hard time getting Citizen to send the renewal becasue they want to get away from Wind Storm coverage. They finally sent the renewal in June and I paid the premium. so the bank coverd the home from Feb.7, until June 7, I paid the entire year 6,000.00 What makes this worse is their is no hurricane threat from Feb to June. What can i do

Expert:  Ellen replied 7 years ago.

The expert that you were working with asked me to respond. I am happy to assist you.

Typically the lender has the authority to procure coverage when there is a lapse in insurance. The insurance that the lender obtains is typically very costly. This is true regardless of whether it is hurricane season.

That said, Chase would have been a named insured on the windstorm coverage. Both you and Chase would have been required to receive notice from Citizens of the policy termination. Chase would also have been required to inform you that it was acquiring windstorm coverage based upon the lapse.

Since you did not receive any notice in February, you will need to file suit against Chase and Citizens to determine which is at fault or if both are at fault. The suit will help determine answers to the questions of when notice of termination was given/received and thereby determine which company did not provide the proper notice and is liable for the excess cost of insurance.

I suggest that you retain a local civil litigator to assist you.
Ellen, Lawyer
Category: Real Estate Law
Satisfied Customers: 36714
Experience: 25 years of experience helping people like you.
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