Some analysts say sub-prime mortgages will create more revenue for mortgage insurers. Mortgage insurance providers saw a reduction of income due to the end run provided by piggyback mortgages. Premiums are now rising due to increased risk and more lenders getting mortgage insurance policies on mortgages they finance. I fully expect the number of mortgage insurance claims to skyrocket. Mortgage insurance companies may wish for the good old days when their revenue from premiums was down and they had fewer claims. It will be interesting. Are mortgage insurance companies prepared to process claims for 20 to 35 percent of the mortgage values and which claims are refused due to pre-existent conditions and non disclosed risk?

File a claim against your mortgage insurance company. Oops it sounds like a flood. We don’t cover flood damage, especially if the flood is the uncontrolled wave of defaulted mortgages caused by of inflated appraisals. Mortgage insurance policy must be effect for two years before the property goes into default, would commonly be applied in the case of suicide or self inflicted injury. If there were indications the mortgage would default, previous late payments, reports of under performing or non- performing mortgages, then the mortgage was sick before you insured it. Sorry, pre-existent conditions are not covered under the terms of your policy.

Insurance coverage is required for homes, automobiles, and health. Mortgage insurance companies will redefine their policies to minimize risk to themselves. They are in it to make a profit and when that is threatened will redefine the policies to minimize their own risk. The buck usually stops at the personal level, the one least likely to afford a loss. It’s time to see how big finance and big insurance duke it out.