We are nearing the end of the Refi process and our lender is asking to be added to our homeowners policy, apparently my insurance agent said this is normal but wants to do it the day of closing. My lender hasn’t given us a closing date and said she needs to be added to the policy so she can order the cd so she can get the closing date. My insurance agent doesnt want to have the lender on the policy for an extended time period just in case something happened claim wise and said technically the lender would have right to the claim I case of
Fire. Can anybody shed some light on this for me. Thanks in advance
Hey @John Matthew Johnston , it's normal for the lenders to be added to the homeowner's policy. They need the property to be insured for at least the mortgage amount in case there's a scenario of a total loss.
Usually, your lender and insurance agent will work together to discuss requirements and let you know how the flow goes. Seems like a case of miscommunication. Have your lender choose an arbitrary COE date and have your insurance agent start the policy on that date. There's no reason why they need to make things this complicated. All the best and good luck!
@Sean Pan Thanks a million brother!