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Our house burned completely to the ground in January of 2015. We only had about $5,000 left to pay on the mortgage. We have since paid it off. Before the mortgage was paid off, the mortgage company placed their own homeowner's insurance policy on it, for a house that no longer exists? Am I missing something? Does this happen often? The mortgage company was aware of the house fire.
Are you saying the Homeowner's Insurance was placed on the pay-off?
After the fire?
I do not understand someone placing a policy on a pay-off even
if the house had not burned.
If I am understanding this correctly it would seem you may not be the only one this is happening to and would be a good case to present to your state insurance official. In the state of Florida you would go to - Division of Customer Services and file a complaint.
I believe they would investigate something like this.
I'd be suspicious that they were the cause of the fire.
Are you certain the policy was for the home and not the land itself? I am interested to know exactly what the policy states.