Lender Placed Insurance

[Joe Stout]

Hey all,

Long story short, there has been a massive flood in my house and I have lender placed insurance. I'm not able to obtain a copy of the insurance policy from the lender, the only thing they'll send shows a declaration page of the limit of coverage of $248,000. When speaking with the lender, they refuse sending anything else and claim that the coverage only covers the outside of the house (the roof is an example I was given). When I ask for something in writing they are unable to provide this claim. However, our flood is mostly interior damage as you can imagine. With my house only being worth $220,000 fixed up, a $180,000 loan, and about $90,000 renovation costs we are stuck in a bad position. 

Has anyone else run into making a claim on their lender placed insurance? Were you covered under your lender placed insurance for interior damage?

A fellow investor friend of mine pointed out that $248,000 is an extremely high limit to only cover the outside of a house and thinks it's nonsense.