Can I sue my mortgage company for not paying my homeowners insurance?

Asked over 1 year ago - Avondale, AZ

My mortgage company has not paid homeowners insurance since November of last year. Now, I am unable to find homeowners insurance at an affordable rate and all quotes I have been getting are at least triple the price? Is this a legal matter?

Attorney answers (2)

  1. Celia R Reed

    Contributor Level 20

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    Answered . If your mortgage company has been collecting for the insurance and has stopped transmitting the funds, I would contact them in writing and see what happened. They may be able to make things right with the insurance company and get your policy reinstated.
    If not, you may have to sue them for damages, including the increase in policy rates.

    Please note that I am answering this question as a service through Avvo but not as your attorney and no attorney-... more
  2. Michael T Millar

    Pro

    Contributor Level 19

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    Answered . If the mortgage company agreed by contract to collect money from you and pay your homeowner's insurance, then their failure to make the payment would be a breach of contract entitling you to compensation for your damages.

    Some states have statutes that govern this very situation and which impose statutory penalties against the lender or its servicer for mishandling an escrow account.

    I am not a AZ attorney, laws vary from state to state, therefore you should always consult a local attorney.

    If this answer was helpful, please mark it as helpful or as a best answer. This answer is for general education... more

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