Is HO-6 required by law? Should I check with my lender if it is combined with my mortgage payments?
Total Comments: 1
Posted: Tue Jan 25, 2011 01:44 am Post Subject:
most property damage insurance is required by the lender and they CAN take out the policy on your behalf if you don't provide documentation you have insurance elsewhere; it's called "forced" coverage...that I'm aware, HO-6 (condo owner's property insurance) is not required by state law anywhere (only auto liability insurance is state requirement). But unless you can be proved negligent to have cause the damage, the condo owner's insurance policy below you is on the hook. If, however, you were to be proved negligent...(ie you could have prevented the loss), you could be held responsible. your liability portion of your property insurance would take over to protect you. (assuming you have coverage). No insurance would mean you would be out of pocket for damages. (again if proving your were negligent). Have you had issues w/ the water heater leaking? Or was this just a sudden leak? If a sudden leak, I dont see negligence.
check w/ your lender as it is possible they "forced" coverage, but if do you have have property insurance via the lender, you'd probably know it. typically the premium is much higher than purchasing through an agent.
Posted: Tue Jan 25, 2011 01:44 am Post Subject:
most property damage insurance is required by the lender and they CAN take out the policy on your behalf if you don't provide documentation you have insurance elsewhere; it's called "forced" coverage...that I'm aware, HO-6 (condo owner's property insurance) is not required by state law anywhere (only auto liability insurance is state requirement). But unless you can be proved negligent to have cause the damage, the condo owner's insurance policy below you is on the hook. If, however, you were to be proved negligent...(ie you could have prevented the loss), you could be held responsible. your liability portion of your property insurance would take over to protect you. (assuming you have coverage). No insurance would mean you would be out of pocket for damages. (again if proving your were negligent). Have you had issues w/ the water heater leaking? Or was this just a sudden leak? If a sudden leak, I dont see negligence.
check w/ your lender as it is possible they "forced" coverage, but if do you have have property insurance via the lender, you'd probably know it. typically the premium is much higher than purchasing through an agent.
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