Letting insurance lapse

[Daniel Suarez]

Hey All,

I have a multi-plex that will auto renew next month. The insurance is not escrowed so the bank doesn't require me to have it. I was wondering are there any other drawbacks (asides from not having insurance for that lapse) of just waiting a month or until this blow over before renewing the insurance? Already have a couple of tenants who won't be able to pay and disbursing $6k will be harder.

Any thoughts on this?

Thanks in advance

[Charles Carillo]

@Daniel Suarez

Just because the bank is not escrowing does not mean it is not required. I have never had a mortgage before that did not have a requirement for insurance. I would call your bank first about a forbearance before not renewing insurance. I imagine they would rather push your principal and interest payments off a few months then have non-insured collateral. Lastly, it is possible that if your loan does require insurance and you do not have it, they might be able to call the loan.