Last Condition HELP

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    Hello All,

    I am stuck and need some direction. I have one condition that’s keeping me from a CTC. There seems to be a disconnect with my MC and the lender. I am purchasing a townhome that has an HOA. The first quote that I got and sent over was an HO6 policy. However as time went on and I got clarification from the HOA; they confirmed that each unit owner is responsible for the building, structure, dwelling….so they informed me I needed to purchase a regular homeowners policy. I did that and uploaded the declaration page to my file and sent to my MC.

    But now The lender keeps asking for a master policy from the HOA for the building. However there is no master policy because I am responsible for the structure, dwelling, building. Because of the HOA the lender seems to think this is an HO6 policy but it is not. I’ve provided the declaration page multiple times showing that I have complete coverage. I’m getting multiple emails from people from NACA that I haven’t even dealt with before stating they need this master policy.

    I don’t know what else to do because this is the last condition. I’ve even forwarded an email from the HOA’s insurance agent explaining what the HOA is responsible for and what Im responsible for.

    Can anyone (Tim perhaps) shed some light on what I should do.

    BTW, I was supposed to close today but of course this condition is holding me hostage right now.

    Thanks in advance



    Hello charice80,

    The question here may well boil down to how the property is listed on the bank application. If it is somehow showing as a condo, that is going to be the source of all the confusion. Get with your MC and double check how the property was listed on the bank application.

    If this were a condo, it would throw up a big red flag where the HOA is concerned. I have never seen a situation where the HOA for a condo did not have a master policy. In fact our National Director of underwriting addressed that very issue recently:

    • Condo purchases require HO-6 insurance and must have at least 100% replacement cost on the dwelling coverage. The lender also needs the master policy showing the lender listed as an additional insured.

    I hope the insurance agent’s letter clearly stated that the property is a townhome and not a condo.

    Tim Trumble
    Online Operations, NACA


    Thanks Tim, that was the confusion. It wasn’t listed correctly. Now I have another problem. But I’m staying positive and will let you all know when I close.

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