Lender wants to force sell me property insurance for the past due to an insurance gap

[Simon Stahl]

Hi there

First of all, I understand that a lender wants uninterrupted insurance coverage for any property they have a mortgage on. What baffles me is that they are trying to force sell me insurance for the past, when we already know that nothing has happened to the property during this time. Do i have any merit to complain or is there a way to get out of this? Sounds like free money for whoever gets it without any risk.

For context, my old insurance for this property did not renew the policy for reasons unrelated to me. The new insurance let me know last minute that they could not start the policy without a document that took me a while to get, so I ended up to be uninsured for about two weeks end of December and beginning of January. The new insurance is already active for about a month by now.

[Greg Scott]

A lawsuit can be filed in the future for a problem that happened when you had no insurance which is why your lender wants that gap covered.