Consumer complaint received 2023-07-25 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: Shellpoint Partners, LLC
State: CA

Complaint narrative:
Dear Sir/Madam, I am writing to address the recent notice and charge I received from Shellpoint Mortgage Servicing regarding a lapse in my home insurance coverage from XX/XX/XXXX to XX/XX/2023. I am deeply concerned about the circumstances surrounding this lapse and the charge of {$320.00}. I have spoken with their customer representative, but I believe there are important factors to be considered in this matter. 

As I explained to the customer representative, the recent increase in losses from natural disasters in XXXX has had severe impacts on homeowners ' insurance options in the state. Several insurance companies have decided not to offer or renew coverage in XXXX, leaving many of us without accessible and affordable home insurance options. 

In the month leading up to my policy 's expiration, I received a notice from XXXX by XXXX confirming the auto-renewal of my policy. However, this renewal never took place, and my policy was canceled on the day it was supposed to be renewed. The reasoning provided by the Insurance company was that they no longer offered home insurance in XXXX, leaving me with limited time to secure new coverage. 

I made every effort to find alternative insurance providers, but as I mentioned to the customer representative, many companies like XXXX, XXXX, XXXX XXXX, and others had also stopped accepting new policies at that time. Fortunately, I was able to secure a policy with XXXX, but the underwriting process took five business days, leading to the unfortunate 10-day lapse in coverage. 

During our conversation, the customer service representative implied negligence on my part, suggesting that I should have been aware of the XXXX fires and avoided the lapse in insurance. However, I must emphasize that the situation at hand was beyond my control, as several reputable insurance providers were no longer offering coverage in the state. 

When I requested information about escalating the matter or a department for disputes, the agent informed me that there were no such options available and that I must pay the penalty of {$320.00}. I find this response inadequate, as it leaves me without any means to address the matter fairly. 

Furthermore, I received Shellpoint 's notice to purchase insurance on XX/XX/XXXX, well after I had already secured an alternative insurer and, to the best of my knowledge, was compliant with all insurance requirements. 

The situation we have experienced is not one of negligent or irresponsible behavior on my part, but rather the result of a larger crisis affecting homeowners throughout XXXX. It is deeply regrettable that the state is facing unprecedented natural disasters, and I believe that Shellpoint is taking advantage of this situation. 

I kindly request a thorough review of my case and a reconsideration of the {$320.00} charge. As a loyal customer, I have always maintained my insurance obligations promptly and responsibly, and I hope that Shellpoint will take these extenuating circumstances into account. 

Please provide me with an escalation point or a department for dispute resolution. I believe there must be a fair and just solution to this matter. 

Thank you for your attention to this issue. I look forward to your prompt response.

Company public response: Company believes complaint caused principally by actions of third party outside the control or direction of the company
Company response to consumer: Closed with explanation