A homeowner financed a house for me, and in the contract it said I?
It may be possible for them to file a foreclosure. Foreclosure actions may be filed if a mortgage contract is breached. While the most common method of breaching a mortgage contract is failure to make payments there are other ways. In a standard mortgage contract are a number of requirements. maintaining insurance and naming the mortgage holder as an additional insured is a common requirement. Maintaining the property is another requirement. Getting proper permits is often listed in a mortgage contract. One item often overlooked is the requirement that you get the mortgagees (lenders) permission before performing any extensive remodels or additions to the house. Violating any of these could be considered a breach of contract and the lender could foreclose but the reality is as long as they get their money theyre usually happy. If insurance is a requirement then the mortgagee would have the right to arrange for insurance and send you the bill. That is standard practice in the mortgage business. Since you have a private mortgage neither I nor anyone else on Quora knows what is written in the terms. However you indicated that maintaining insurance is a part of the contract. Id be very surprised if there was not a clause requiring the note holder to be named as an additional insured. If that is the case you would be in breach of contract. Why take that chance? Maintain the insurance.