Mortgage Reporting for Vacant Home Insurance Policies

Clients that buy a vacant homeowners insurance policy with Vacant Home Insurance Now, or any other provider, need to understand their responsibilities with their mortgage company or bank. Whenever there is a change of insurance, and especially a move from regular homeowners insurance to vacant home insurance policy, the mortgage company needs to be informed by contract.

Clients should start by calling the insurance department of the mortgage company and simply informing a representative that vacant home insurance has been placed. Some may simply take the information over the phone, but most will require the insured to send in the new declarations page for vacant home insurance. There is no need to send the mortgage company the entire policy document, only the 2 or 3 page declarations page will be fine.

Unfortunately, most will not allow you to email this document, but most will accept a fax in lieu of mailing the hard copy.

Homeowners need to remember two important things:

1. That whenever there is a change in insurance they need to inform their mortgage company.
2. If the mortgage company feels, at any time for good reason, the vacant home is not property protected, they can take action to put insurance on themselves. This is called forced placement and this action is not desirable to insureds.

Make sure the mortgagee always has up to date declarations on the vacant home insurance to avoid problems and expense.