Ryan, Other/Just Looking in Philadelphia, PA

Can I change insurance companies under an FHA mortgage?

Asked by Ryan, Philadelphia, PA Thu Jan 23, 2014

I just bought a home with an fha mortgage. Everything went ok through closing, about three weeks ago. Yesterday I got a letter from the homeowners insurance co telling me they're cancelling my coverage. Long story short they lost my home inspection report and thought I never sent it. Thank god I keep all my emails so i had proof. Anyway, they want me to do all the required repairs in the next week, I have the work scheduled but it'll take longer than they want. They sent the balance of the upfront escrow closing payment to me today as a check. I have about three weeks until it's cancelled. Can I just get insurance through another company? Will that other company have the same requirements?

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Answers

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The Insurance Companies all have their own underwriting rules and inspections so you need to call an Independent Agent who works with a number of companies my wife is an agent try call her at Primer Insurance 215-663-8998 and ask for Margaret Cunningham

Philip J. Cunningham Sr.
Market Force Realty
801 W. Street Rd
Feasterville, PA 19153
866-993-8585
267-934-1971
PhilCunningham2004@yahoo.com
Web Reference: http://www.GreatPaRE.com
1 vote Thank Flag Link Fri Jan 24, 2014
To answer your question: "Can I change insurance companies under an FHA mortgage".. Yes!
You can shop around and find an insurance agency that best meets your needs.
0 votes Thank Flag Link Fri Apr 4, 2014
Good morning Ryan;
I understand your anger with the insurance company but the fact is most if not all insurance companies now inspect the property they will be insuring and require repairs.This requirement started about a year ago in the Philadelphia area.
I am curious of why you you came here to ask the question instead of contacting the real estate agent that did representation during your purchase.
0 votes Thank Flag Link Sun Mar 30, 2014
Ryan -
Insurance companies clearly write into their policies that there is a 60 window in which they can evaluate a risk and cancel coverage within that time period for specific reasons. This allows the insurance company to inspect the property to make sure there are no major hazards that could be a liability down the road. For example, the most common liability claim is the trip and fall on a homeowner's sidewalk. Insurance companies try to eliminate these types of claims by requiring the insured to fix any broken or uneven sidewalks they find. In your specific case, you should be able to find another insurance company to insure your home even though there might be some work that needs to be done. Some insurance companies are a little more lenient with terms and conditions of the repairs. Some will even accept a contract with a contractor as proof that the work will be done in a timely manner. Good luck, and I hope this helps.
0 votes Thank Flag Link Sun Mar 30, 2014
Yes, as long as you have an insurable interest in the home, there has to be a product to cover that interest. Lenders require it, and you would be in a dire situation if you suffered a total loss on the home without coverage. You must cover at least the rebuild cost of the home, and while their are industry standards regarding the types of coverages that are to be included in a standard policy, each company will have different underwriting guidelines that must be followed. Some companies underwriting standards will prevent your situation from being acceptable under a standard policy while others will not. You will have to look for the best coverage for your situation.
0 votes Thank Flag Link Mon Feb 24, 2014
Contact James Lavin at Trident Insurance Company he can help you find the best rate around.
james.lavin@prufoxroach.com
0 votes Thank Flag Link Wed Jan 29, 2014
Hey Ryan! As an insurance broker here in Philadelphia, we switch over home insurance customers all the time mid term! FHA or not! There are no costs or penalties associated with switching and you may even find a better rate!

What I think you may have an issue with is the extent of repairs needed to be made. I would be glad to gather the information from you and take it to my underwriters to see what can be done!

Most likely, If you went with a preferred carrier (State Farm, All State, etc....), and they had an issue with part of the risks associated with the home, then so will most other insurance carriers as well. The best thing to do is be up front about what needs to be done, what they are requiring, and when you will have this issue resolved... that way you can avoid another cancelation letter and possible denial of claim if the information was withheld. I have many preferred carriers that will give up to 6 months to make necessary repairs, assuming they knew about the risk at time of application.

I hope this helps! Give me a call if you have interest in having my agency shop it around for you!

Jeffrey Gallo, LUTCF, Owner/Agent of Jefferson Avenue Insurance, 610-260-3078,

JGallo@JeffersonAveInsurance.com
0 votes Thank Flag Link Fri Jan 24, 2014
I would check all of your options quickly. The companies will most likely have the same requirements so I wouldn't count on just changing.
0 votes Thank Flag Link Thu Jan 23, 2014
Hello Ryan;
You can change insurance companies but most if not all have the same requirement.
Don Sherman
Century 21 Advantage Gold
Cellphone-267-716-8228
Email-realtor94@gmail.com
0 votes Thank Flag Link Thu Jan 23, 2014
100% yes. FHA loans has the same insuring requirements as all other mortgages. Just make sure your bill is paid and you have the proper limits needed to fully insure yourself, and the lender.
0 votes Thank Flag Link Thu Jan 23, 2014
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