Homeowners insurance lapsed--Ins. Co. failed to send billing

[jimdana1942]

My homeowners insurance has lapsed, just received notice from them. However, my Mortgage company never received any billing statement and I never received my copy of the bill as I usually do. The billing is normally sent in early December. Now, my local agent is having to try to get a policy from other companies as La. Cit. will not renew for us.

I am suspicious about the Citizens motive as I am a member of the Class Action lawsuit against them. In the meantime I have no ins.

Any suggestions? Do I have any recourse here?

 

[goodburbon]

File another suit...

 

[CajunTim]

Hope you dont need insurance while you do whatever you have to, to get coverage.

 

[dangermoney]

If your mortgage company is holding your insurance premiums in escrow, and they are responsible for paying it on your behalf, then I would let them handle it. Legally, it could be argued that it is their fault that they did not follow up on your insurance billing statement since you probably delegated that responsibility to them as terms of your mortgage agreement. If they refuse to take responsibility for it, then I would talk to an attorney about suing them.

 

[LACamper]

Citizens underwriting doesn't know about the lawsuit and wouldn't care if they did, its not their department. Unless there's something wrong w/ your house citizens will write you again. Recourse? Probably not.
As an agent I follow up my policies that don't get paid, be it by client or mortgage company, as a service. Its not required since Citizens directly bills and sends a proper notice of cancellation to both you and your mtg company. Its your responsibility to make sure it gets paid, even if your mtg company pays it.
I don't understand why your agent hasn't rewritten the policy through Citizens unless he thinks he can either get you reinstated (and save you $65 or so in fees- not worth it to go without coverage for a weekend!) or get you in w/ another carrier (put me w/ Citizens and I'll cancel it later, don't leave me uncovered!).

If it makes you feel any better, your mtg company automatically insures you for the value of their loan but no contents or liability coverage.

 

[dangermoney]

If you have no legal recourse, then file a complaint with the LA Department of Insurance thoroughly documenting what happened to you. A little bad PR goes a long way. It worked for me.

 

[glimmerman]

Citizens underwriting doesn't know about the lawsuit and wouldn't care if they did, its not their department. Unless there's something wrong w/ your house citizens will write you again. Recourse? Probably not.
As an agent I follow up my policies that don't get paid, be it by client or mortgage company, as a service. Its not required since Citizens directly bills and sends a proper notice of cancellation to both you and your mtg company. Its your responsibility to make sure it gets paid, even if your mtg company pays it.
I don't understand why your agent hasn't rewritten the policy through Citizens unless he thinks he can either get you reinstated (and save you $65 or so in fees- not worth it to go without coverage for a weekend!) or get you in w/ another carrier (put me w/ Citizens and I'll cancel it later, don't leave me uncovered!).

If it makes you feel any better, your mtg company automatically insures you for the value of their loan but no contents or liability coverage.

The insurance the mortgage company takes out is called single lenders coverage and only protects the mortgagee for the balance of the loan, you are out in the cold. As far as Citizens, they have to take you back as they are the insurer of last resort. Get another agent!!

 

[LACamper]

^^^^^yep...

 

[jimdana1942]

The insurance the mortgage company takes out is called single lenders coverage and only protects the mortgagee for the balance of the loan, you are out in the cold. As far as Citizens, they have to take you back as they are the insurer of last resort. Get another agent!!

I'm gonna get with my agent Monday as to your suggestion. Thanks

 

[gunut]

I think we all should let our insurance lap. Stop paying the premiums and cancel all homeowners policies. Maybe that will shake up the insurance companies enough to get it back the way it was before the storms. What are they gonna do, take all our houses away from us.

I'm more concerned about the price of insurance than I am of the Big "O" banning the sale of certain guns.

 

[W1nds0rF0x]

I think we all should let our insurance lap. Stop paying the premiums and cancel all homeowners policies. Maybe that will shake up the insurance companies enough to get it back the way it was before the storms. What are they gonna do, take all our houses away from us.

I'm more concerned about the price of insurance than I am of the Big "O" banning the sale of certain guns.

Yes. But first they will hit you with a forced premium.

 

[LACamper]

It won't bother the insurnace companies, its not like they're making money in LA... That's largely why new companies haven't run into LA to pick up the slack.
Your mortgage company won't be happy though and like Windsor said, will force place you and charge you a fortune.

 

[penguin]

Citizens underwriting doesn't know about the lawsuit and wouldn't care if they did, its not their department. Unless there's something wrong w/ your house citizens will write you again. Recourse? Probably not.
As an agent I follow up my policies that don't get paid, be it by client or mortgage company, as a service. Its not required since Citizens directly bills and sends a proper notice of cancellation to both you and your mtg company. Its your responsibility to make sure it gets paid, even if your mtg company pays it.
I don't understand why your agent hasn't rewritten the policy through Citizens unless he thinks he can either get you reinstated (and save you $65 or so in fees- not worth it to go without coverage for a weekend!) or get you in w/ another carrier (put me w/ Citizens and I'll cancel it later, don't leave me uncovered!).

If it makes you feel any better, your mtg company automatically insures you for the value of their loan but no contents or liability coverage.

If you the agent breaches its contract with the homeowner to notice or pay as required, you may be liable and an action could be brought against your Errors & Omissions policy carrier. For example, every year I put money in escrow to pay my mortgage and the mortgage company does it for me when it comes in (actually, it's an estimate for the next years, but whatever). If the mortgage company was holding this money and failed to pay and my policy was cancelled for not payment pf premiums I would have a good claim against them. I also agree, like stated, that Citizens gives a rat's ass about the class action. I've been on both sides as an independent adjuster doing work for Citizens as well as been a paralegal setting us mass torts against carriers- they don't sweat the small stuff. Counsel deals with everything and they don't get involved in the individual policy holders mortgage/insurance issues.