Trying to get a handle on this complex insurance setup and how it works with Escrow. Here’s the background:
- Bought a 4-acre property in 2020 (El Dorado County, CA)
- Property has 1 loan with 1 loan number, but includes 2 houses on 1 parcel (main house and granny flat)
- We live in the main house (#102) and rent out the granny flat (#100) as an Airbnb
Current policies:
- Main house (#102) has CA Fair Plan for fire and Bamboo for general home insurance
- Granny flat (#100) has CA Fair Plan for fire and Aegis business insurance for home coverage
Problem:
My mortgage company only acknowledges the two policies for the granny flat (#100), which matches the loan’s address. Every time I mention the main house (#102) and its policies, they get confused and request either a change of address on the policy or another loan number, which we don’t have. As a result, only 2 out of the 4 policies are covered in Escrow.
I’ve heard of other properties that managed similar setups with both homes’ policies covered in Escrow. Is it possible to get all 4 policies included in Escrow for both houses? My broker suggested there might be a way if there’s something in the closing documents that clarifies the property’s setup. Any advice?