Legal Question in Real Estate Law in Maryland

My dad has a reverse mortgage. He has been hospitalized and in a nursing home for the past 5 months. I spoke with the mortgage co a few months ago about his situation and they said if he may be returning, everything can stay as is. I was about to call them recently and say he will not be returning home when I found that the pipes burst in his home causing damage and his home insurance cancelled at the end of December 2015. The insurance co is willing to do a new policy with a inspection because of the age of the house. I have power of attorney for my dad. Who is responsible? What can be done?


Asked on 2/20/16, 2:38 pm

1 Answer from Attorneys
Robert Sher Wagshal and Sher

If the insurance was cancelled for nonpayment of the premium and the claim arose after the policy expired there probably will not be coverage for the loss, unless the insurance company did not follow cancellation notice requirements. Any new policy wouldn't be retroactive. Your father still owns the property but would be obliged to repay the mortgage once he permanently ceases to occupy it as his principal residence. You would have to repair the damage in order to sell or transfer occupancy.

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Answered on 2/21/16, 10:19 am


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