Let Lenders Buy Their Own Home Insurance

* The recent article by Jill Bettner titled “Candidates Side With Policyholders,” (Aug. 28) was interesting and informative. The concept that the banks and mortgage companies have the right to protect their financial interests in quake-damaged properties that are used to secure their loans is sound enough. What is unsound is that the lending institutions expect the homeowners to pay not only for their own protection but also for the protection of these same lending institutions.

Consider a homeowner who puts 20% down on his home. He is forced (in order to obtain the loan) to pay the entire premium for insurance to protect not only himself, but in much greater degree the lending institution. Why should we be forced to pay for their protection?

If the banks and mortgage companies want to be protected against abandonment of property--a laudable goal--then let them purchase abandonment of property insurance and let them pay the premiums for it themselves!

GEORGE L. HOLLOWAY

Stevenson Ranch