Posted on: 05th Jul, 2010 06:34 am
I just received my mortgage statement and my payment increased $60.00 per month due to hazard insurance. Why is hazard insurance 1800.00 a year and my home owners insurance is only 700.00. Financially we can not afford an increase. Can we look for a better rate.
Hazard insurance is the same as homeowners insurance, it's just another name for it. You should contact your lender and ask why the insurance increased so much - odds are that the coverage may not be enough or the insurance company's rating may not meet the lenders requirements - and then they are issuing a "forced place insurance policy" on you which can be significantly higher. Bottom line is, call your lender and ask for an explanation.