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Insurance and Bank: Is this a fair request?

Started by spqsydney
about 16 years ago
Posts: 80
Member since: Dec 2008
Discussion about
We obtained a mortgage last year for our apartment which is in a Manhattan Co-op building. As part of the closing we obviously had to provide the building insurance and this expires yearly, of course, like all insurance but is automatically renewed. Our Bank, Bank of America, now requires us to provide the renewed insurance certificate directly to them and we have requested it from the coop board. While it is not the biggest deal in the world, it is also a little bit of a pain in my ass to have to obtain this for the banks on a yearly basis. My question is, is this standard practice? Do other people with mortgages also have to do the same thing. Any (sensible) views / advice welcome. Many thanks.
Response by ph41
about 16 years ago
Posts: 3390
Member since: Feb 2008

Just had the managing agent do this for our re-fi, but never had to provide this before (last 10 years), and do not expect to have to do it again.
Mortgage is with Citibank, though I don't think that should make any difference.

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Response by Tallisman
about 16 years ago
Posts: 121
Member since: May 2009

This doesn't make sense, but a lot of financial institutions are making much sense these days. I'm an insurance broker, so hopefuly I can provide guidance. BofA is listed on the master co-op policy as a mortgagee, their address and clause are listed right on the policy, along with everyone else who has a mortgage in the bldg. At the time of acceptance of the renewal, the commercial insurance carrier must respond to every mortgagee clause with a certificate of insurance. Your common charges are paying for the commerical insurance premium, so it's beyond me why a) the commerical insurance carrier isn't doing this, b) the commercial broker isn't facilitating if it's not being done, and c) what's the managmenet company doing? Tell BofA, no, you are not their secretary and they should reach out to any of the three parties above to fufill their request.

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Response by spqsydney
about 16 years ago
Posts: 80
Member since: Dec 2008

Tallisman, thank you very much, most helpful - and also what I thought should happen

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