Somehow or other, I never posted episode #21 of Ask Tim, which hit the streets almost four months ago. I think I was traveling that week. No matter, here I am in an out-of-this-world setting discussing a very earthly problem: The fate of an insured's homeowners insurance coverage when he owns the home but no longer resides there.
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The ISO Homeowners policy covers the dwelling and other structures at the "residence premises" -- the dwelling where the named insured and spouse reside
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Some carriers have interpreted this to mean that, once the named insured leaves the dwelling with no intent to return, coverage for the dwelling, other structures and additional living expenses ceases immediately
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Court decisions across the country are divided on this
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Clients in this situation need dwelling policies
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More information on the Big I Virtual University Web site
Can a mortgage company require an insured to purchase dwelling coverage to satisfy the mortgage?? Is there something we can provide to the mortgage company to show them they can't??
Posted by: Kathy Papagianakis | August 11, 2011 at 09:44 AM
Kathy,
I don't see anything in the New York Banking Law that addresses the requirement of a Dwelling policy vs. a Homeowners policy. I'm curious as to why the lender would prefer the Dwelling form. Is the home in question owned by a trust or rented out?
Posted by: Tim Dodge | August 12, 2011 at 01:49 PM