Podcast Summary: The David Greene Show - Episode 40: Introduction to Homeowner Insurance & Lender Responsibilities

Podcast Information:

• Title: The David Greene Show
• Host: David Greene
• Guest: Christian Bashelder, Broker and Owner of The One Brokerage
• Episode Title: Introduction to Homeowner Insurance & Lender Responsibilities
• Release Date: March 17, 2025
• Description: In this episode of Real Talk Real Estate with David Greene, host David Greene is joined by Christian Bashelder to delve into the critical aspects of homeowner insurance and the responsibilities lenders hold in managing these policies. The discussion centers around real-life scenarios, expert insights, and practical advice for real estate investors to navigate the complexities of insurance payments and lender interactions.

1. Introduction and Episode Overview

[00:00] David Greene (A):
"What's going on, everyone? I am David Green, host of the David Green show, and I am here with Christian Bashelder, broker and owner of the one brokerage. And today we are going to be talking about. Christian, take it away."

David sets the stage for the episode by introducing Christian Bashelder and outlining the focus on homeowner insurance and lender responsibilities.

2. Understanding Homeowner’s Insurance and Its Collection by Lenders

[00:41] David Greene (A):
"Okay, so break it down for us, Christian. Let's start off by just describing what is homeowners insurance and why is it normally collected by the lender?"

[00:51] Christian Bashelder (B):
"Yeah. So the lender obviously cares about you paying them back. That's called your principal and interest... So the T is your property taxes. That's what you owe the state or county... Now, the one that we're going to focus in on is your homeowner's insurance because on our previous episode, we discussed what happens in the if the house is destroyed..."

Christian provides a comprehensive breakdown of the PITI components (Principal, Interest, Taxes, Insurance), emphasizing the crucial role of homeowner's insurance in protecting both the borrower and the lender’s investment. He explains how monthly payments are allocated towards insurance and property taxes, ensuring the property remains safeguarded against unforeseen events.

3. Case Study: Lender Fails to Pay Insurance

[00:51 - 03:41] Christian Bashelder (B): Christian delves into a specific incident involving a Houston couple affected by Hurricane Barrel. He explains how the lender failed to pay the homeowner's insurance despite the borrower diligently making monthly payments. This negligence left the property uninsured during a critical time, leading to significant financial loss for the homeowners.

[02:30] Christian Bashelder (B):
"The lender put it back on them saying, we sent you mail. How easy is it to avoid those of you who get mail like I do..."

Christian highlights the complexities and potential pitfalls when lenders mishandle insurance payments, stressing the importance of homeowners actively verifying their coverage.

4. Lender’s Defense and Homeowner’s Responsibility

[03:41] David Greene (A):
"Now, in this case, the lender is saying that they mail documents to the person's house, but that the address may have been incorrect... the lender was supposed to be paying it. So what advice do you have for real estate investors who might have an impound account set up with the lender and assume that it's being paid because they're being charged for it?"

David raises the issue of lenders deflecting responsibility and places emphasis on the homeowner's role in ensuring their insurance is active.

5. Expert Advice for Real Estate Investors

[04:20 - 07:17] Christian Bashelder (B):
Christian shares actionable advice for real estate investors to prevent similar issues:

• Set Reminders: He recommends setting calendar reminders for property tax and insurance due dates.
• Direct Verification: Actively contact insurance companies and tax authorities to confirm payments.
• Monitor Mortgage Statements: Regularly review mortgage portals to ensure that insurance and taxes are being paid as intended.

[06:50] Christian Bashelder (B):
"Make sure your insurance is there. Make sure your property taxes are paid. Very important... It's annoying that you have to do this. The alternative is you can waive your impound accounts and you can just pay them yourselves."

Christian underscores the importance of proactive management and communication with lenders to safeguard one's investments.

6. Communicating with Lenders and Contact Information

[07:17] David Greene (A):
"If people want to call and check on you... What's the best way to get ahold of you?"

[07:28] Christian Bashelder (B):
"Guys@the1brokerage.com is just our company website... The one Broker on Instagram is the best way to get me if you're trying to get in touch with me directly."

Both hosts provide their contact information, encouraging listeners to reach out for further assistance and support in managing their real estate investments effectively.

7. Conclusion and Final Thoughts

[07:41] David Greene (A):
David wraps up the episode by reiterating the importance of being vigilant regarding homeowner’s insurance and lender responsibilities. He emphasizes the potential risks of neglect and the benefits of staying informed and proactive.

"Thanks, everybody for listening. We hope this was eye opening for you and we hope we save somebody from falling into the trouble that this Houston couple unfortunately found themselves in... We're the one brokerage. We'd love to finance your real estate."

Key Takeaways:

• Understanding PITI: Grasping the components of mortgage payments is essential for managing real estate investments.
• Lender's Role: Lenders are responsible for managing insurance and tax payments, but homeowners must verify these actions.
• Proactive Management: Regularly checking with insurance providers and tax authorities can prevent costly oversights.
• Communication: Maintaining open lines of communication with lenders and brokers is crucial for timely updates and resolutions.
• Expert Guidance: Seeking advice from professionals like Christian Bashelder can provide valuable insights and strategies for safeguarding investments.

Notable Quotes:

• Christian Bashelder (02:30):
  "The lender put it back on them saying, we sent you mail... How easy is it to avoid those of you who get mail like I do..."

• Christian Bashelder (06:50):
  "Make sure your insurance is there. Make sure your property taxes are paid. Very important... It's annoying that you have to do this."

• David Greene (07:41):
  "We hope we save somebody from falling into the trouble that this Houston couple unfortunately found themselves in."

Conclusion:
This episode of The David Greene Show serves as a crucial resource for real estate investors, highlighting the importance of understanding homeowner's insurance and the responsibilities lenders hold. Through real-life examples and expert advice, listeners are empowered to take proactive steps in managing their investments and avoiding potential pitfalls.