Legal Question in Business Law in Ohio

Im in a dispute with my mortgage company regarding specific amounts of flood insurance needed. My mortgage company states they can force me to carry more coverage than is needed for flood insurance because they reserved the right in my loan docs. The loan docs read: "Borrower shall insure all improvements on the property, whether now in existence or subsequently erected, against any hazards, casualties, and contingencies, including fire, for which Lender requires insurance. This insurance shall be maintained in the amounts and for the periods that Lender requires. Borrower shall also insure all improvements on the property whether now in existence or subsequently erected, against loss by floods to the extent required by the Secretary." Because the flood insrance is mentioned seperately, and has seperate stipulations than the hazzard, I would say that the "extent required by the Secretary" line would mean that the "Secretary" chooses the amount of flood insurance coverage and the Lender chooses the amount of hazzard insurance coverage. Is this correct? I would think they wouldn't have even added a seperate sentence if the Flood insurance was to be considered in the same group as hazzard insurance.


Asked on 6/14/10, 12:28 pm

1 Answer from Attorneys
Kevin B. Murphy Franchise Foundations, APC

Any attorney will say they need to review the insurance - loan documents in full. Also more information is needed. Consult with an attorney in your area for specific advice.

Kevin B. Murphy, B.S., M.B.A., J.D. - Mr. Franchise

Franchise Attorney

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Answered on 6/14/10, 4:13 pm


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