Posted on: 09th May, 2008 04:07 pm
is there a letter to send to banks requiring that homeowners insurance covers the loan? I work for an insurance company and we are always getting request for eveidance of insurance that cover the loan, I know in California that is against the laws, please let me know is there is such letter or where can I find that information.
Hi Soniapalkaplu,
Welcome to forums.
You mean to say that in California it's against the law for any bank to ask for homeowners insurance letter? I'm not aware of the laws specifically in thi state but what I feel is, there's no harm if a lender wants to verify whether the loan has an insurance coverage especially in these days of foreclosure and credit crisis.
Thanks
Welcome to forums.
You mean to say that in California it's against the law for any bank to ask for homeowners insurance letter? I'm not aware of the laws specifically in thi state but what I feel is, there's no harm if a lender wants to verify whether the loan has an insurance coverage especially in these days of foreclosure and credit crisis.
Thanks
Hi Soniapalkaplu,
Are you saying that the bank said you to send the evidence of the homeowners insurance that covers the loan amount? If so I don't think that it is necessary for the borrower to prove evidence that they have got a homeowners insurance.
It is up to the borrower whether he will take homeowners insurance or not.
Best of luck,
Larry
Are you saying that the bank said you to send the evidence of the homeowners insurance that covers the loan amount? If so I don't think that it is necessary for the borrower to prove evidence that they have got a homeowners insurance.
It is up to the borrower whether he will take homeowners insurance or not.
Best of luck,
Larry