If you don't buy homeowners' insurance on your own, the bank that holds your mortgage can buy it for you. (Photo: Thinkstock)
A federal district court in Texas has rejected a homeowner's lawsuit seeking to require his bank to repair hurricane damage to his home because it had purchased insurance on his behalf.
|The case
In August 2004, Antonio C. Ponce obtained a mortgage from Chase for $66,103, secured by his home in Montgomery County, Texas. As part of the transaction, Ponce agreed to purchase "[f]ire and extended coverage" insurance. If Ponce failed to purchase insurance, Chase could insure the property "at [Ponce's] expense" by adding the "cost of any such insurance" to his "indebtedness as provided in the security document."
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Steven A. Meyerowitz
Steven A. Meyerowitz, a Harvard Law School graduate, is the founder and president of Meyerowitz Communications Inc., a law firm marketing communications consulting company. He may be contacted at [email protected].
