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Mortgage and Home Insurance?
Does the lender have the right to choose my home insurance for me? Even if I already chose for myself? I selected Allstate at their recommendation. Signed the contract and everything with Allstate. Then the lender decided to go with a different company altogether without telling me because they wanted my mortgage payment to be lower. Is that allowed? I wouldn't have moved forward if I new they switched me to such a terrible policy.
- A HunchLv 72 months agoFavorite Answer
You will have to review what you agreed to.
Most people are responsible for selecting their own homeowners insurance even when it's paid via an escrow account.
- EvaLv 72 months ago
You have the right to choose your own insurance. The only time they can choose for you is if you fall behind paying for it. Since it would appear your insurance and taxes are kept in escrow, it will take a little more work to get the policy changed. I don't know how they could have changed the policy without your signature. I'd be very forceful with them and tell them you want the original policy you selected. You could go behind their back and switch it yourself, but it might mess up the escrow.