By Matthew Matheny
*This blog post is not intended to be legal advice. It is purely informational and educational in nature.
A major storm is forecasted to hit your hometown. You secure your family, your possession and your home. Maybe you evacuate. You sleep better at night knowing you have property insurance that will cover any damage. You know you have insurance because you pay your mortgage every month, and every month a portion of your payment is escrowed to pay your property insurance. Your mortgage company requires you make these payments and requires you maintain property insurance. Your mortgage company pays your premiums with your escrowed funds, or at least they are supposed to.
The storm hits. Your home is damaged or destroyed. Your furniture, your appliances, your personal possessions--- lost or damaged.
You call your property insurance company to make a claim and you are informed that you do not have coverage. Why? You make a payment each month. The answer-your mortgage company failed to pay your premium from your escrow account, leaving you without insurance for your loss.
Putting aside the storm, if you have not been provided with a copy of the insurance policy, then you can request it in writing. If the mortgage company refuses to provide a copy of the policy, there is a chance they are not paying your premium.
You have rights as a homeowner against your mortgage company. Do not be a victim, again.