Our mortgage (placed three years ago) was recently sold, and the new mortgage company sent us a letter saying they require us to have more coverage. Is this legal?
It depends. If you have a condo the lenders have a new requirement that you also have your own condo policy in addition to the Association policy.
If that is not your issue, then the new lender may be requiring you to have more dwelling coverage on your home. Here is gets tricky. It depends on what state your in if they can do this legally. And, are they saying the dwelling amount has to match your loan? That is not required. If they are only concerned that you have enough insurance to rebuild then that may be real.
You really need to speak to your agent and ask their advice to see if what the lender is saying is real and legal and if it makes sense. And, to make sure you do have enough insurance on your home.
Not exactly.
They can't CHANGE the insurance requirements, but they sure can enforce them, if they think the prior lender was "letting it slide".
You'll have to pull your original mortgage contract, see what it says, and compare it to what the new lender is saying - if you think they're wrong, you have to be very, very specific about why, and you have to include proof - like a letter from your agent.
Don't let this go - you can't just ignore it and hope it goes away.
homeinsurance.awardspace.us - try this one. Got my home insurance from them. As I know they provide such a service.