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| *Loan,banking and credit>>>mortgage insurance |
What right does my insurance company have to Include my Mortgage Company on my claim check? |
We had a house fire and I'm looking for answers. After all, my mortgage is secured from default by PMI. My Mortgage company did not take out the policy on my house, I did. My mortgage company does not own my policy, I do. So if anyone can explain why the Ins company has the right to include the MC on my claim check I would greatly appreciate it, thanks. Your mortgage company has a lien on your home. To protect the lien it expects the property to be repaired after a fire loss. By including the mortgage company the insurance company is trying to guarantee that its money is properly used. PMI is a guarantee you don't walk away from the house and mortgage and really has little to do with maintaining the value of the property. Source(s): http://www.credit-yourself.com/homeowner... The fact is that your mortgage company has a lien against the house. It is the same thing with a car that has a lien against it until it's paid off. When you signed up for your mortgage you signed off that your responsibility to them would be paid off first. The PMI does not secure your mortgage it secures the cost to them if they have to foreclosure on you. The mortgage company has every right to the check. They made a loan on the house and it burned, or was damaged. All you have to do is call the lender and they will sign it over to you. Not a big deal unless you were not going to repair, or rebuild. If it was a total loss, the lender will be involved in the rebuilding and signing of the checks to the contractor. The PMI only covers the top 25% of equity. If you had a 10% down loan, that means the PMI only covered the remaining 15%. Welcome to Real Estate Ok if you have a lien on any type of property then the law states that the insurance company must include them on the check...that's because they have a financial interest...sorry but thats the way it is Sure, your home is OWNED by your mortgage company until it is paid in full. They are the ones that suffer the loss if the home is damaged. If you plan on staying in your home, the mortgage company will work with you to get your home repaired, and live-able again. The insurance company should issue you 2 checks one for contents and one for damage to your home. The check for damages to the home can be signed directly over to a contractor by you and your mortgage company. The contents check is yours alone, and has nothing to do with your mortgage company...good luck! If you have a mortgage, likely in the verbiage of the contract you agreed to having them named as a additional insured in respects to your Homeowners policy. This is because they are the actual owners of the home which they are holding the note on as collateral against your loan/mortgage. And hence to ensure that they get their money back from the remaining value of the loan since their collateral no longer exists in the form of the house. |
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