Posted by Bruce Keefe on August 16, 2001 at 00:07:03:
In Reply to: Forced Insurance Coverage posted by Joseph W. Morgan on August 14, 2001 at 12:38:25:
A commercial lender, as a requirement of granting the loan, usually requires this. It is insurance to protect the property that secures their loan. In most cases, the insurance provides property coverage only, no liability. Most lenders either have their own in-house agency or have direct contract with certain carriers to provide this limited coverage. The premiums are tacked on to the monthly payments made by the borrower/property owner.
If you are the lender, you should ask (demand) that you be named as Mortgagee on the borrower/property owner’s policy. (Might be a little tough if you’ve already granted the loan. Funny how cooperative borrowers are BEFORE they get the loan, huh?)
If that doesn’t work, ask your independent agent to check with his home office if he’s never heard of it. Alternatively, you could check with your friendly Escrow Company, Title Company, of your own commercial lender’s insurance department for a referral to an insurer that provides this coverage.
Good luck and let us know how it comes out.
Bruce