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Law Educator, Esq.
Law Educator, Esq., Lawyer
Category: Real Estate Law
Satisfied Customers: 118740
Experience:  Licensed attorney practicing landlord-tenant, land use and other real estate law and litigation.
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I have a townhouse that I have had for 16 years. I have

Customer Question

I have a townhouse that I have had for 16 years. I have insurance through my HOA so I only need renters insurance. I have moved out and the mortgage company is now forcing me to have additional insurance over the last year or so. Is this normal? Why do I need additional insurance when I have insurance through my HOA?
JA: Because real estate law varies from place to place, can you tell me what state the association is in?
Customer: Gaorgia
JA: Has any paperwork been filed?
Customer: No.
JA: Anything else you want the lawyer to know before I connect you?
Customer: Yea. If this is not normal I want a refund as they have incorporated this as a new fee in my mortgage.
JA: We have a 30 day refund policy so you can simply email***@******.*** and they will try to fix your problem or refund your money.
Customer: No. I'm talking about my mortgage company
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  MIAMILAW1127 replied 1 year ago.

Hello. Thank you for contacting me. I am a consultant here and I am looking forward to assisting you with your question. If at any point any of my answers aren’t clear please don’t hesitate to ask for clarification. Please be patient as I will be typing my responses to you from scratch. Also, I can only answer/address the questions you ask specifically based on the information your provide. Please try to provide as much information as possible so I can best assist you.

Please note: This is general information for educational purposes only and is not legal advice. No specific course of action is proposed herein, and no attorney-client relationship or privilege is formed by speaking to an expert on this site. By continuing, you confirm that you understand and agree to these terms.

The short answer is yes. If the property is financed, you are required to have homeowners insurance. Typically, the HOA does not insure your entire property, but only the parts of the property that they are responsible for (such as the roof). In other words, they may not be insuring the entire property for it's financed value and you would need to insure the property for the remainder.

I hope this helps. Please use the SEND or REPLY button to keep chatting, or please RATE when finished. You may always ask follow ups at no charge after rating. Thank you.

Customer: replied 1 year ago.
I get that, but I have not had to have additional insurance for the first 14 years. I have only covered my clothes, furniture, etc. I have only been charged this in the last year or so.
Expert:  MIAMILAW1127 replied 1 year ago.

I understand, but unfortunately, you need insurance at the time of loss.

Customer: replied 1 year ago.
What??? I don't think you read my question fully. For 14 years my HOA insurance has been sufficient. It covers the entire structure except appliances, Sheetrock, etc. Why would this not be sufficient now.
Expert:  MIAMILAW1127 replied 1 year ago.

It is not sufficient because the mortgage company wants to make sure the entire property is insured for it's appraised value.

Customer: replied 1 year ago.
Sorry, but you still haven't answered my question. Your answer is generic and not focused on my situation. I'll try to find an answer elsewhere. Thanks for your help.
Expert:  MIAMILAW1127 replied 1 year ago.

Ok sounds good. Best of luck to you.

Expert:  Law Educator, Esq. replied 1 year ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.
I am a DIFFERENT CONTRIBUTOR as your previous contributor has left.
In your contract of mortgage, there is a clause that requires insurance. If the HOA insurance you have currently satisfies their insurance coverage requirements then no additional insurance is necessary. Your additional renter's insurance covered your contents, not the structure itself. So, if the HOA insurance is going to remain in place and will provide coverage, you need to make sure the mortgage company is a named insured on the policy AND you need to get proof of insurance (binder) from the HOA to submit to the mortgage company. If the HOA will not make the mortgage company an additional insured on their policy for your unit, THEN the mortgage company can insist on insurance that names them as an insured as you are no longer residing in the premises to guarantee their security interest in the property.