Will Anyone Take this Risk?

[DJAJ]

I was wondering if any of you licensed in MD has a carrier that will take this risk or have any advice on how to help. Here's the deal, my buddy at the bank is trying to get a LOC for a retired couple but their homeowners policy lapsed back in April due to non pay. When they tried to reinstate the policy the company sent out an inspector to the home and here's what the inspector found:

-The front door where there is water damage must be repaired/replaced.
-The cause of water damage at the front door area must be determined and repaired to prevent water intrusion into the home.
-The front stairs need to be leveled and any gap from the stairs into the front door closed to prevent trip and fall hazards.
-The green awning down and the wood ramp at backdoor must be removed as they are blocking home entrance/egress.
-The damaged siding next to the rear door needs to be repaired/replaced.
-The source of water intrusion into the rear of the home must be determined and repaired to prevent water intrusion into the home.
-The screen off the rear window must be reinstalled
-The wood stove has to be inspected.

The insurance company is unwilling to reinstate the policy.The owners are planing on getting these things fixed but they are tight with money and it might take a little time. However, they need coverage for the LOC and of course in case anything happens.

 

[Accelerated]

The MJIA might offer a DP-01, but not likely until the entrance/egress is made accessible.

The only reason I think that they may would be the fact the a DP-01 would require a wind created opening for any water damages to be covered, and deferred maintenance issues are very specifically excluded, so much of the deferred maintenance or issues resulting from it would be excluded from the start anyway.

It might not work out well for a line of credit for them though, as DP-01 policies are ACV, and based on your description of the risk, it probably would not be insured for much.

 

[GInsGrp]

The state FAIR PLAN should take that with a condition surcharge. However as stated previous it would be a dp-1

 

[benwrigh]

I was wondering if any of you licensed in MD has a carrier that will take this risk or have any advice on how to help. Here's the deal, my buddy at the bank is trying to get a LOC for a retired couple but their homeowners policy lapsed back in April due to non pay. When they tried to reinstate the policy the company sent out an inspector to the home and here's what the inspector found:

-The front door where there is water damage must be repaired/replaced.
-The cause of water damage at the front door area must be determined and repaired to prevent water intrusion into the home.
-The front stairs need to be leveled and any gap from the stairs into the front door closed to prevent trip and fall hazards.
-The green awning down and the wood ramp at backdoor must be removed as they are blocking home entrance/egress.
-The damaged siding next to the rear door needs to be repaired/replaced.
-The source of water intrusion into the rear of the home must be determined and repaired to prevent water intrusion into the home.
-The screen off the rear window must be reinstalled
-The wood stove has to be inspected.

The insurance company is unwilling to reinstate the policy.The owners are planing on getting these things fixed but they are tight with money and it might take a little time. However, they need coverage for the LOC and of course in case anything happens.

They need to take some responsibility and get some of that fixed. If they are not physically able, surely they have someone, family member or neighbor that would help. Some of this is simple stuff that they should have fixed without being told to.

 

[bigjake]

Im not a MD agent, but from experience (DC REALTOR), the bank with FIRST Mortgage is loss payee, not necessarily the LOC. Since the policy is not in force, that bank with Senior, first status, must handle the situation. They must pay the premium or fix it basically.
MD is a title theory state and that bank, "owns" the house so to speak, since it holds the title.
Now, if the LOC is offered by the Senior mortgage holder(bank), or if the house is otherwise paid for, the bank offering the LOC wont have title until released from the title company. But, the bank can advance money to escrow for the repairs in order to get the property insured, both with P&C and the title insurance. The title company or Bank may have to pay the premium. The only drawback is that it will take money away from the settlement, so the owners wont have as much to spend, but thats what they get for not keeping the house up to start with.

 

[DJAJ]

From everyones experience, is this something I should get involved with or should I recommed to them to go back to the agent they been with for a long time and have them do it? I havent put a policy through the FAIR Plan before. Not sure if its easy or time consuming. Btw, the fact that their agent is trying to help them out is bs. You know, the one they've been paying for 25 years.

 

[Accelerated]

From everyones experience, is this something I should get involved with or should I recommed to them to go back to the agent they been with for a long time and have them do it? I havent put a policy through the FAIR Plan before. Not sure if its easy or time consuming. Btw, the fact that their agent is trying to help them out is bs. You know, the one they've been paying for 25 years.

They could always help themselves and stop neglecting the risk if they want someone to loan them money on it. You have described damages consistent with years of neglect, and in the case of the awning that apparently fell and blocked the rear entry, outright laziness. Pull the awning, tar the holes in the roof and repair/repaint the water damaged areas. It's just some elbow grease, tar and paint.

 

[DJAJ]

They could always help themselves and stop neglecting the risk if they want someone to loan them money on it. You have described damages consistent with years of neglect, and in the case of the awning that apparently fell and blocked the rear entry, outright laziness. Pull the awning, tar the holes in the roof and repair/repaint the water damaged areas. It's just some elbow grease, tar and paint.

Im with ya, I agree but at this point they are old and cant do much. Not sure if they have kids or not. They just spent a ton of money on replacing the roof. This just got thrown at me and im trying to help and see what I can do.

 

[insurance1822]

From everyones experience, is this something I should get involved with or should I recommed to them to go back to the agent they been with for a long time and have them do it? I havent put a policy through the FAIR Plan before. Not sure if its easy or time consuming. Btw, the fact that their agent is trying to help them out is bs. You know, the one they've been paying for 25 years.

Walk...because if anything goes wrong (and with people like this there's a higher probability,) they will 100% lie and attempt to drag you into the mud. I can see it now "he told me I had coverage" or "he didn't say I needed to do this or that"

 

[Accelerated]

Walk...because if anything goes wrong (and with people like this there's a higher probability,) they will 100% lie and attempt to drag you into the mud. I can see it now "he told me I had coverage" or "he didn't say I needed to do this or that"

While the quoted response seems jaded and cynical, my company is on the other side of the looking glass (claims), and I can tell you that the described scenario is not at all uncommon.