Personal Finance

House insurance

  • Last Updated:
  • Jul 5th, 2011 11:59 am
Tags:
None
Member
Jul 6, 2010
270 posts
17 upvotes
Gatineau

House insurance

Once a house insurance policy is cancelled due to non-payment how hard is it to get insurance again? My neighbour says he can't get insurance for his house because it was cancelled due to non-payment.

Anyone know where he can get house insurance in Ontario? His policy expired September 2010 and the house was built in August 2010. Essentially he never paid and they cancelled his policy.
7 replies
Deal Addict
Feb 24, 2008
3583 posts
2275 upvotes
Mississauga
how long was your policy for? You never paid since the inception of the policy? I dont understand the timing of these events.
Member
Jul 6, 2010
270 posts
17 upvotes
Gatineau
Policy was for a new house. He never paid the premium and they cancelled it on him. He has now been without house insurance since last September.
Banned
May 12, 2004
9756 posts
4136 upvotes
Ottawa
ottawa316 wrote: Policy was for a new house. He never paid the premium and they cancelled it on him. He has now been without house insurance since last September.

Unless the house is paid for I doubt it. The bank will foreclose a house for an uninsured property. I've seen it happen, the insurance company sends a registered letter to the lien holder and it only takes a few weeks.
Deal Addict
User avatar
Nov 2, 2007
1424 posts
394 upvotes
GVRD
Cas77 wrote: Unless the house is paid for I doubt it. The bank will foreclose a house for an uninsured property. I've seen it happen, the insurance company sends a registered letter to the lien holder and it only takes a few weeks.

I don't think the lender would foreclose. I recall reading my own mortage docs and it said that if you didn't have insurance the lender would purchase it and then bill you for the cost. That would probably be at a very high rate $$$.

It won't be that hard to get insurance, just contact a broker and tell them that the policy was cancelled for non payment. Honesty goes a long way. This happens in my office all the time and its never an issue out west.
Member
Jul 6, 2010
270 posts
17 upvotes
Gatineau
chenwaa123 wrote: I don't think the lender would foreclose. I recall reading my own mortage docs and it said that if you didn't have insurance the lender would purchase it and then bill you for the cost. That would probably be at a very high rate $$$.

It won't be that hard to get insurance, just contact a broker and tell them that the policy was cancelled for non payment. Honesty goes a long way. This happens in my office all the time and its never an issue out west.

Thanks for the info...I told my neighbour that the bank might foreclose on his house and he almost had a heart attack.
Deal Addict
Jan 28, 2009
2013 posts
613 upvotes
Calgary
ottawa316 wrote: Thanks for the info...I told my neighbour that the bank might foreclose on his house and he almost had a heart attack.

Hopefully he gets it straightened up right away. The lender always makes continuous insurance coverage for at least the amount of the mortgage as a condition of the mortgage itself.
Member
Jul 6, 2010
270 posts
17 upvotes
Gatineau
canehdianman wrote: Hopefully he gets it straightened up right away. The lender always makes continuous insurance coverage for at least the amount of the mortgage as a condition of the mortgage itself.

Can you elaborate on that? Does this mean the house is insured by the lender and they'll force you to pay their premiums?

Top