Baker Law

05/31/2026

Today we'll continue discussing how your mortgage company affects your policy, and more importantly, whether your mortgage company should make decisions about your coverage.

YOU PROTECT YOUR PROPERTY.

Your lender requires you to carry insurance because they have a financial interest in the property. Their main concern is making sure your coverage protects the amount they still have invested in your mortgage debt. This is not the same as making sure your coverage is sufficient to repair or replace your home and your property.

Don't let your mortgage company determine the value of your home and personal property, the endorsements you need, or the type of policy you carry. That's your job.

BEWARE OF "DISCOUNTED" INSURANCE OFFERS.

Some mortgage companies have been known offer homeowners what appears to be a great deal on insurance, but if you look at the details, you’ll see it’s only a great deal for the mortgage company, not for you.

The discounted rates are rarely the result of “bulk buying.” They're almost always the result of reduced coverage and higher deductibles. Homeowners who accept these offers often find out the deductible is too high. The policy may not cover their personal property or additional living expenses. In some cases, the mortgage company lists itself as the primary insured, which means your claim check would go directly to the lender, not to you.

WHAT IS A FORCE-PLACED POLICY?

Your mortgage requires you to provide proof of adequate insurance coverage. If you cannot or do not provide proof of coverage, or if your coverage is insufficient, your mortgage company will purchase a policy on your behalf, and the cost of this policy will be added to your monthly mortgage payments. This is called a “force-placed” or “lender-placed” policy, and it's never a good policy for you.

“Force-placed” policies are almost always more expensive than a policy you'd buy on your own. Despite the higher cost, the coverage may not be enough to fully rebuild your home. Your personal property will not be covered, and the endorsements you need aren’t included.

Most importantly, the mortgage company will list itself as the primary insured. Even though you’re paying for the policy, your mortgage company files the claim and communicates with the adjuster, and your mortgage company will receive the check. Not you.

YOUR COVERAGE, YOUR DECISION

Communicate with your agent about the coverage you need, secure your own policy, review it every year, keep the details updated, and make sure it fully covers everything you need. Your mortgage company is looking out for their investment. You need to look out for yours.

NEED A LITTLE HELP?

This concludes our five-day policy check series. Hurricane season starts June 1st. It’s not too late to make sure you're ready.

If you need help understanding your policy details, contact Baker Law (361) 355-8855 for a free policy review and our attorney will be happy to review your policy and explain your coverage to you.

05/30/2026

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05/30/2026

Yesterday we covered optional coverages and why you need a full copy of every policy. Today we'll begin discussing mortgage companies and how they affect your policy and your claim payments.

YOUR MORTGAGE COMPANY WILL BE ON YOUR CHECK.

When your insurance company issues a claim payment, they'll almost certainly include your mortgage company as a co-payee. That means you cannot deposit the check unless your mortgage company endorses it for you.

This isn't an accident. Your mortgage contract says they will be included on insurance claim payments, and your insurance policy says they will include your mortgage company on claim payments.

Until your mortgage is paid off, your lender has a financial interest in your property. Including the mortgage company on claim payments allows the lender to ensure claim proceeds are used to make repairs so the property holds its value.

WHAT HAPPENS WHEN THE INFORMATION IS WRONG?

If the mortgage company listed on your policy is out of date, the check will be issued incorrectly. To fix it, you must first update the policy, then the carrier must stop payment on the original check, and finally the check will be reissued with the correct mortgage company.

This process can take a few weeks or possibly a couple of months, meaning you can’t begin repairs because you must wait for a corrected check.

This happens more than you’d expect. Loans get transferred to new lenders, mortgages get refinanced, and mortgages are paid off. Don’t rely on your mortgage company to make the carrier update your policy. That’s your job.

WHAT SHOULD YOU DO RIGHT NOW?

Pull out your declarations page and find the Additional Interest/Mortgage Company section.

If the mortgage company listed is wrong, contact your agent and ask them to update the mortgage information. Then be sure your agent sends you a copy of the revised declarations page so you can confirm the change was made.

If you paid off the mortgage but the mortgage company is still listed, ask your agent to remove the lender from your policy. Mortgage companies do not notify insurance companies when loans are paid off.

ESCROWING YOUR INSURANCE POLICIES

Just because you enjoy the convenience of having your policy escrowed, doesn’t mean your mortgage company can or should be responsible for your coverage decisions and renewals.

Know when each policy is set to renew. Then monitor your escrow account to make sure the payment is deducted AND monitor the insurance company to make sure the new policy is purchased.

After Hurricane Harvey, some homeowners discovered their mortgage companies failed to renew their policies. They didn’t know their coverage was cancelled until after they tried to file their claim, but then it was too late.

Insurance companies will not issue a new policy when there’s a major storm in the Gulf. If you wait for a storm to find out whether your policy was renewed, it will be too late. Check right away and be certain.

Don't let a paperwork problem or a disorganized mortgage company be the reason you can't start rebuilding after a storm.

05/29/2026

Yesterday we covered names, limits, deductibles, and policy type. Today we're looking at a few more things worth reviewing before hurricane season arrives.

OPTIONAL COVERAGES AND ENDORSEMENTS

These add-ons may cost a little extra, but in a major loss, they can make a significant difference in getting your damages paid.

Here are four you may want to see on your policy.

Additional Living Expense (ALE) / Loss of Use: If your home becomes uninhabitable after a covered loss, this coverage reimburses you for temporary housing and other living expenses while repairs are made.

Increased Cost of Construction or Ordinance/Law Coverage: If you have this coverage, you can submit receipts and be reimbursed for added costs you pay to comply with updated building codes.

Wind Driven Rain: Most policies require wind to create a visible opening before interior water damage is covered. This endorsement covers damage caused when rain is forced into your home by strong winds but there is no visible opening.
Extended Replacement Cost: After a major disaster, construction costs in the affected area often spike. This endorsement increases your liability limit by a set percentage to help cover those increases.
If you want to add any of these to your policy, talk to your agent. Some can be added at renewal or mid-term.

COVERAGE EXCLUSIONS
Your policy lists multiple exclusions, which allow the carrier to deny coverage and refuse to pay for damages such as mold damage, wear and tear, manufacture defect, and cosmetic damages, to name a few. Unfortunately, you won’t find these exclusions listed on your policy declarations pages. To truly know what your policy does and does not cover, you need to get a complete copy of your policy.

DO YOU HAVE A COMPLETE COPY OF EACH POLICY?

Your declarations page is only a summary. The full policy is a 50-100 page document that includes all terms, conditions, exclusions, and endorsements.

If you don't have a complete copy, ask your agent for one now. You may need to demand it more than once but be persistent. It is information you should not wait to receive.

Many carriers make it difficult to obtain a complete policy after a claim has been filed. They don’t want you to know all the ways they can or will deny payment of your claim. In fact, some carriers refuse to provide one at all, leaving policyholders no choice but to hire an attorney and file a lawsuit just to get a complete copy of their policy.

You probably pay thousands of dollars for your policies. Don’t you have a right to know what you purchased?

Check back over the next two days as we get into the details of mortgage companies and why that section of your policy deserves its own conversation.

05/28/2026

𝐒𝐮𝐦𝐦𝐞𝐫 𝐀𝐜𝐭𝐢𝐯𝐢𝐭𝐲 𝐒𝐞𝐫𝐢𝐞𝐬
Join us this summer for our Summer Activity Series held every Wednesday from 11:00 AM – 2:00 PM at Memorial Park starting June 3 until July 29.

These free, fun, family-friendly activities are free and open to all ages. Activities will be offered in a come-and-go format, allowing families to participate at their convenience throughout the event time. Guardians must remain with their children during activities.

Come enjoy games, crafts, outdoor fun, and community time all summer long at the park!

05/28/2026

Now that you have copies of your policy declarations pages, let’s take a closer look. If anything on your policy needs to be corrected or updated, you need to ask your insurance agent to make the correction(s).

NAMES OF INSURED PERSONS
• Every person listed on your policy will be a payee on any claim check you receive. That means you won’t be able to deposit your claim check unless they endorse it.
• If you're married, BOTH spouses should be listed on the policy. Don’t limit your rights under the policy by allowing your name to be excluded.
• If you're divorced, and the decree awarded you the home, your ex-spouse should NOT remain on the policy.
• If your spouse has passed away, his or her name needs to be removed from the policy.
• If your name has been legally changed for any reason, make sure your new legal name appears on the policy so it matches your ID or driver's license.

CHECK YOUR RENEWAL DOCUMENTS
• When you receive your policy renewal documents, you should do a side-by-side comparison between your existing policy details and limits and the proposed renewal.
• Sometimes carriers may leave off or greatly reduce coverages in the renewed policy without notifying the policyholder of the changes. You don’t want to learn about a reduction or removal of coverage when you’re filing your claim.
LIABILITY LIMITS AND COVERAGE AMOUNTS
• Look at the Coverage A section and find the liability limit for your Dwelling/Structure. Is your limit enough to rebuild your home?
• Construction costs have increased significantly in recent years. Limits that were adequate a few years ago may not be enough today if you suffer a total loss.

DEDUCTIBLES
• All insurance policies have deductibles. This is the amount the carrier will subtract from your claim payment, forcing you to cover the amount out of pocket.
• A 3% deductible may cost you less in policy premiums than a 1% deductible, but are you prepared to pay that full amount on your own.
• Some policies apply a higher deductible when the damage results from a named storm. Know what your policy says and be prepared.
• Despite what anybody tells you, you will have to cover the cost of your deductible. If somebody tells you they can get your entire roof replaced and it won’t cost you a penny, be suspicious and read any contract you are asked to sign.

RCV POLICY OR ACV POLICY
• Unless your home or your roof is brand new, the carrier will subtract depreciation from your claim payment along with the deductible. This can be anywhere from 10% to over 50% of the total amount you need to make repairs. The type of policy you have will determine whether you can recover that withheld depreciation or not.
• With an ACV (Actual Cash Value) policy, the depreciation that is subtracted from your payment is labeled non-recoverable. You cannot get it back.
• With an RCV (Replacement Cost Value) policy, you can submit proof that you paid full replacement cost for repairs and the carrier will release the depreciation they withheld. Deadlines apply, so mark them on your calendar. Some carriers will grant an extension if you ask.

Check back tomorrow as we cover optional coverages and endorsements, including several that most homeowners don't know they can ask for, and why the details in those sections can make or break a claim.

05/27/2026

Discover a piece of Rockport-Fulton history at the Fulton Mansion! 🏛️✨

From its stunning Victorian architecture to the stories that shaped life on the Texas coast, this historic landmark is the perfect stop for history buffs and weekend explorers alike.

Take a walk through the past and experience one of the area’s most iconic treasures!

05/27/2026

Hurricane season begins June 1st. That gives you a few days to check something most people forget about until it’s too late: your insurance policy.

If you live in the Coastal Bend, you may have a homeowner's policy, a separate wind policy, and a flood policy. That’s three separate policies, and it’s extremely important to be familiar with each one before a storm begins to develop.

Your Policy Declarations Page is the place to start. It’s a 2 to 4 page summary of your coverage. If you do not have a current copy, contact your agent and ask for one today. And while you are at it, request a complete copy of the full policy, including all endorsements and exclusions.

When your declarations page arrives, here’s what you need to review:

- Names of insured persons listed on your policy
- Liability limits, coverage amounts, and deductibles
- Type of policy (RCV or ACV)
- Endorsements, optional coverages, and exclusions
- Lienholders and/or mortgage company

Each of these items matters more than most policyholders realize. Be sure and follow this story over the next few days as we walk through each item, so you’ll know what to look for and why it matters before you need to file a claim.

05/25/2026

Today and every day, we are thankful to those who have given the ultimate sacrifice for our freedom. We wish you a happy Memorial Day! ❤️🤍💙

05/23/2026