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​​The question comes into the Geek CaveTM often enough that I thought it would be worth posting a reminder here. In New York and Connecticut, the law prohibits lenders from requiring home mortgage borrowers to buy dwelling insurance limits that are greater than the home's replacement cost. Your Resident Insurance GeekTM has not had to answer this question since ... yesterday.​Here is chapter and verse. First, New York Banking Regulations  Section 38.9 states:No mortgage banker or exempt organization shall require any mortgagor, in connection with the granting of a mortgage loan, to obtain a hazard insurance policy in excess of the replacement cost of the improvements…

​Question from a Big I New York member: We have a client who has a homeowners policy with [Carrier X], which was not supposed to be renewed by the carrier due to a 1/1/2020 loss involving "under-age drinking".  The policy was due to be non-renewed at its March 4th, 2021 expiration date. On February 5th, 2021, the underwriter notified us that the policy was inadvertently renewed; however, a mid-term cancellation will be issued for "Increase In Hazard" surrounding the 1/1/2020 loss.  A copy of the Cancellation Notice is attached. I'm concerned about the legality of this.  Is a carrier allowed to mistakenly renew a policy when…

[embedded content] ​"​And I saw my reflection in the snow-covered hills 'Til the landslide brought me down ..."​​-- Stephanie Lynn (AKA Stevie) Nicks, American singer/songwriter​Here in the Empire State, we generally don't have to worry much about earthquakes. New York gets some seismic activity, but it's usually minor and certainly not on par with what our fellow citizens in the midwest and west must contend with. But does that mean we shouldn't be concerned about the ubiquitous earth movement exclusions found in personal and commercial property insurance policies? A couple in Colorado has learned the hard way that there are different kinds of earth movement losses, and their experience could…