Mortgage Companies hate to turn loose of cash on an insurance claim.
Apparently some hate to turn loose of cash from your impound account as well?
The mortgage clause for an insurance claim is pretty straight forward. It ensures that the mortgage companies interest is protected in the event of a claim. Technically they own the property. So, policies contain a mortgage clause:
12. Mortgage Clause.
The word “mortgagee” includes trustee.
If a mortgagee is named in this policy, any loss payable under Coverage A or B will be paid to the mortgagee and you, as interests appear. If more than one mortgagee is named, the order of payment will be the same as the order of precedence of the mortgages.
That can be a real challenge when resolving a claim. They each will do their absolute best to hold the money as long as they can. Don’t hear to many stories where they don’t pay premium from an Impound Account though. Who would have thought?
This story is about the impound account though.
What happens when the mortgage company does not ay the insurance company? Not good. Like an impound account gone bad.
The impound account is where you pay a little extra each month on your house payment, and the mortgage company send money to the insurance company to ensure the premium is paid on time. OCWEN, arguably the world’s worst mortgage company service (BBB “F” rating) failed to pay a premium for these folks. Result? Claim denied. Pretty basic, you don’t pay the premiums, you don’t have coverage.
Glad to see that the local news channel stepped up and offered assistance to the consumer when they filed an insurance claim that was denied by the carrier apparently initially for lack of payment of the premium? They ultimately got the claim paid. Course it sounds like the same song and dance on any claim. Low ball offer, exclude elements, etc. Hats off to the adjuster who finally made it happen and hats off to the news channel for taking up the cause.
Full text and video here:
Action 9 helps family fight insurance denial
… included mold remediation and living expenses that had been denied. This year Action 9 has helped 25 consumers reverse insurance claim denials ranging from medical coverage to property damage, even homeowner fire claims that involved total losses.
Thanks as always for reading,
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