Our insurance policy with Cal Fair was canceled after a year because the renewal payment wasn’t processed through our mortgage. Now we need to find a new policy, but we’re facing fees for lacking proper insurance.
I’m trying to figure out if we made a mistake or if someone else is at fault. We bought our house last year, and our mortgage included all taxes and insurance, so we thought everything was taken care of.
We only found out yesterday that our policy was canceled last week, and we didn’t receive any prior notifications from Cal Fair. Since everything was managed through Rocket Mortgage, we believed there was nothing further we needed to do.
Now our insurance broker is blaming Rocket Mortgage for the oversight, while Rocket Mortgage claims it’s the broker’s responsibility. The broker insists she sent us a “friendly reminder” email about the renewal, but I never received anything like that.
I don’t want to incur fees if this isn’t our fault. Does anyone have insight into who might be responsible for this situation?
It sounds like a very frustrating situation, and it’s understandable that you’re trying to figure out where the breakdown occurred. Here are some points to consider that may help clarify the issue:
Mortgage and Insurance Responsibility: Typically, when you have a mortgage, the lender may handle the insurance payment on your behalf as part of your monthly mortgage payment. However, it’s essential to verify exactly what your mortgage agreement states regarding insurance responsibilities, as well as the terms agreed upon with the insurance broker.
Communication: Since you didn’t receive any notifications from the Cal Fair Plan until after your policy was canceled, it sounds like there may have been communication issues. Check your spam or junk email folders for any missed emails from the broker. You can also ask the broker to provide records of communications sent, including dates and times.
Broker vs. Lender Responsibility: It’s common for brokers to send reminders about renewal, but if your mortgage was structured so that the lender was supposed to handle the insurance, the mortgage company should have ensured that the insurance was paid. The broker’s claim of sending a reminder is important, but without confirmation that you received it, you’d have some ground to contest that aspect.
Fees for Lapsed Coverage: You may want to discuss the fees with both the insurance broker and the lender. If you genuinely did not receive the necessary communications about renewing your policy, there’s a stronger case to argue that you shouldn’t be held accountable for penalties.
Documentation: Gather any documentation you have regarding your mortgage, the insurance policy, and any communication (or lack thereof) with both the lender and the broker. This may help in resolving disputes or providing a clearer picture of where the problem lies.
Consumer Protection: If you feel you’re being unfairly charged, you can reach out to your state’s insurance department, which handles consumer complaints. They can offer additional guidance on your rights in this situation.
In summary, it sounds like a miscommunication between the insurance broker and Rocket Mortgage could be at fault. It’s essential to delve into the details of your agreements and communications. If the matter is not resolved easily, you may want to consider consulting a legal advisor who specializes in insurance or consumer rights.