insurance policy cancelled whats next?

[David Rutledge]

I have a few rental properties that I have recently purchased. I received a letter from my insurance company today stating that they had to cancel my policy due to water damage to the ceiling of one of my units.

I only purchased the property a few months ago and I had an inspection done that did not show anything like this nor have I heard anything from the contractor that my property management company had go in to the property to take a look.

None the less this is obviously something I am going to have to take care of. My immediate concern however is how this cancellation of insurance will affect my mortgage on my loan. I am worried that if I am not able to secure insurance with another company while I fix this problem that my loan may be called due by my lender.

Does anyone have any knowledge or experience with this kind of thing? I am only new to the investment world, what should my next course of action be to ensure my mortgage remains in tact. This has really blind sided me and I am pretty worried.