Finance, Investments 3rd building failure. About to be uninsurable

[PiaffePonyTx]

Long story short: 72x300 fabric building built in 2012. The fabric is in 3, 100' sections. Lost one section 2014 and manufacturer replaced all 3 sections because the other 2 were having fabric failures.

March 2019, we lost 100' section in a storm. It still hasn't been repaired due to insurance and manufacturing delays. Just lost a second cover yesterday due to storms even though we didn't get hit nearly as hard as the rest of Dallas.

After the March incident, insurance carrier dropped me in June(they said they would insurance everything else but the building). After speaking with my insurance broker, he said he wouldn't be surprised if the new provider dropped me too.

I still have 2.5 years left to pay on my building which of course insurance is required until it's paid off. What happens if I can't insure my building?! Are they going to 'call the note'? I don't have $40k just laying around.


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[Zigner]

What's much more likely to happen is that the lender will procure insurance and charge you for it. It will be considerably more expensive.

 

[PiaffePonyTx]

What's much more likely to happen is that the lender will procure insurance and charge you for it. It will be considerably more expensive.

I guess they can charge whatever they want, but you can't pay money that you don't have.[emoji2368]


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[PayrollHRGuy]

I guess they can charge whatever they want, but you can't pay money that you don't have.[emoji2368]

If and when the bank provides insurance it will become part of your mortgage debt.

 

[adjusterjack]

I guess they can charge whatever they want, but you can't pay money that you don't have.[emoji2368]

It'll be added to your mortgage payment and they'll foreclose if you default on the payment.

After speaking with my insurance broker, he said he wouldn't be surprised if the new provider dropped me too.

If that happens you might end up going to insurance companies that specialize in high risk properties. You'll pay a lot for coverage.

 

[army judge]

I guess they can charge whatever they want, but you can't pay money that you don't have.[emoji2368]


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If the costs become too exorbitant, you have the ability to discuss various bankruptcy filings with several local bankruptcy attorneys.

You have posted several threads about "fabric" building failures and insurance costs.

You might need to consider other options, as it appears fabric buildings don't endure the weather where you are trying to use them.

Plus, the insurance costs related to insuring same are proceeding to surpass the cost of the building itself.
I wish you well.

 

[PiaffePonyTx]

It'll be added to your mortgage payment and they'll foreclose if you default on the payment.



If that happens you might end up going to insurance companies that specialize in high risk properties. You'll pay a lot for coverage.

The building is separate from my mortgage and with a totally different finance company.


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[Zigner]

The building is separate from my mortgage and with a totally different finance company.

I still have 2.5 years left to pay on my building which of course insurance is required until it's paid off. What happens if I can't insure my building?! Are they going to 'call the note'? I don't have $40k just laying around.

The lender for the building is whom everyone is referring to.

 

[adjusterjack]

The building is separate from my mortgage and with a totally different finance company.

Then it's that lender that will add the insurance cost to your payments.