My lender is going to force a wind insurance policy of $1493 annually despite my having a CalFAIR policy. What is cheaper, expanding my CalFAIR to include windstorms or let the forced insurance apply ? Also, I thought CalFAIR insurance was adequate for mortgage lenders ? Can they just force insure on any whim ?
Gene Koch asked 6 months ago 1 Answers
Shirley Brown Expert answered 5 months ago Dear Gene,
In the California FAIR Plan policy, wind is covered under ‘Extended Coverages.’ This endorsement is about 5 percent of the total annual premium. It is much cheaper to endorse the policy than allow force placed coverage.
California FAIR Plan is adequate coverage for lenders, if you endorse Extended coverages, Vandalism, and malicious mischief. Ninety percent of agents include the extended coverages. Adding Vandalism and malicious mischief is about 2.5 percent of the Extended coverages premium, so very inexpensive. Call your agent and add the endorsements.
Best of luck!
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