Legal Question in Real Estate Law in California

Re: hurricane insurance

Unless your mortgage papers reserve to them the right to require such casualty insurance, or at least the right to require such casualty insurance as they deem necessary, they would have no right to do this. Since they are adding it to your escrow, it sounds like they bought the insurance for you. This sounds like it is possilbe that the mortgagor and the insurance company are in cahoots to sell unneccessary insurance. Many insurance companies have taken such a beating in recent years from hurricanes and other disasters, they are doing aggressive things to try to make up for it by pushing insurance in areas where there are no such risks. It sounds like you might be justified to refuse to pay it, and maybe even file a complaint with the state insurance commissioner. While a hurricane cannot be said to be absolutely impossible in the interior of california, neither would a snowstorm in the Bahamas, but I don't think they're selling much snow insurance there.

Re: hurricane insurance

What does the mortgage contract say? If it says they can require such insurance as is reasonable, this might be considered unreasonable.

Joel Selik

Attorney, Real Estate Broker

www.SelikLaw.com

Re: hurricane insurance

Of this sounds like a very interesting question. In not only carries with it contract law in real property law but consumer rights law also. Of course you must look to the terms and conditions of your deed of trust on the promissory note. (The mortgage) that starts the process. Even though it may allow for the lender to require this I would need to know much more in terms of the location of the property, the weather conditions eccentric. I think is turned a letter from a lawyer should work if the blender is reasonable under the circumstances. If the lender is unreasonable and you have to file suit I couldn't even gas at this point if you would be successful. I know though that there is in all probability a clause in the deed of trust which is an attorney's fees clause. That means the prevailing party would have attorneys fees, if the court would allow them, to the winning party. Therefore if you one and the court felt that you at a right, you could get some of your attorneys fees back. I would be more than have been discussed this problem with you and you may reach me at 925 -- 945 -- 6000. Very interesting, but all screwed up

Re: hurricane insurance

Another solution is to refinance.