Quote:
Originally Posted by Dantilla
Simple. Give them a copy of your policy.
Building is covered, so mortgage company is happy.
There is no clause in the loan docs stating if the building is no longer the borrower's primary residence, the loan is called due.
The mortgage company was happy to keep loaning more to my friend.
Good payment history, several mortgages, let's keep loaning him money.
He's also building equity, so lender's position is safe in case of default.
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I suspect a homeowner policy will not cover damage on a landlord/tenancy. Insurance companies always looking for a way out. Mtg co will know when the owner/tenant policy is submitted. I'd be more concerned with coverage on a catastrophic claim, than saving a few percent bucks on financing.