Homeowner · Cary NC · Member since 2024 · 3 posts · 0 votes
Hi Everyone,
I need some help finding a home insurance agent/company. I will need insurance for 2 properties I have. I am trying to get HELOC and the bank needs to be added as a lien holder but my current insurance provider can't do that.
There is clearly some miscommunication. What they are asking for is standard and ultra common.
Perhaps the wrong wording was used? The bank registers with the state/city about being a lien holder against the property. That prevents the property from being sold or encumbered without the other party knowing about and/or being paid off for the prior liens.
For insurance, they need to be added as a loss payee. Therefore, if the place burns down, you only get the money after the loss payees (mortgage, heloc, other lien holders) get paid. This is what the bank wants. They want to make sure they get paid off before you can take the money and run.