Cal Fair Plan canceled our policy after just one year because our mortgage provider didn’t process the renewal payment. Now we’re in a position where we need to find a new insurance policy and are facing fees for lacking required coverage.
I’m trying to figure out if we made a mistake or if someone else is to blame. We purchased our home last year, and all taxes and insurance costs were included in our mortgage payment, so we thought everything was taken care of.
We didn’t receive any communication from Cal Fair Plan until yesterday, and that was only to inform us that our policy was canceled last week. Given that everything was managed through Rocket Mortgage, we assumed there was nothing we needed to do on our end.
Now, the insurance broker is pointing fingers at Rocket Mortgage, while Rocket Mortgage claims it was the broker’s responsibility. The broker insists she sent us a “friendly reminder” via email about the renewal, but we never received any such email.
I don’t want to be stuck with a fee if this isn’t our fault. Any thoughts on where the miscommunication happened?
It sounds like a frustrating situation, and it’s understandable that you want to clarify where the responsibility lies. Here’s a breakdown of the situation:
Understanding the Process: Typically, when you buy a home and include insurance in your mortgage payments, your mortgage lender (Rocket Mortgage, in this case) is responsible for ensuring that the insurance is paid for and renewed. This is usually done through an escrow account where funds are collected with each monthly payment.
Cancellation Notification: The fact that you did not receive any notification from Cal Fair Plan until after the policy was canceled is concerning. Insurance companies are generally required to communicate significant changes like cancellations, so it’s worth checking if they followed proper procedures.
Responsibility:
Insurance Broker: If the broker claims they sent reminders, it’s important to determine whether they have documentation of that communication. If you didn’t receive it, that might indicate a lapse in follow-up.
Next Steps:
Filing a Complaint: If you feel you are being unfairly charged, consider filing a complaint with your state’s insurance commission. They can provide guidance on the next steps.
Legal Advice: If fees are appearing as a result of this situation and neither party will take responsibility, it might be worthwhile to consult a legal expert who specializes in real estate or insurance matters for personalized advice.
In short, it could be a mix of miscommunication and management issues between your mortgage company and the broker. Document everything and approach both parties with your concerns.