Insurance FAQ
 

How Do I Fight Forced Placed Insurance On My Home?

Question by edawg32 | Posted in Insurance

I'm in really big trouble. Currently my loan is in default because the mortgage company refused to take my regular payment. The Force Placed Insurance shot my loan up by 4x and I was unable to pay that amount so now my home is three months behind. I continue to get the run around with this particular bank. I showed them proof of insurance but there was a laspe of 7months. Is there a way out of this situation?

Answer: The mortgage company will not back off the forced insurance for the period of time that YOU did not provide the insurance. Be aware that forced placed insurance is EXTREMELY expensive, and that is why your payment went up so drastically. The mortgage company paid for what you failed to provide according to your mortgage.

You are on the hook for those seven months of insurance.
 
 

I Only Had A Wind Insurance Policy On My Home Can My Lender Still Force Place Insurance On My Prooperty?

Question by edawg32 | Posted in Insurance

I recently had a forced place insurance policy put on my home by a lender who aquired my loan from another company. they are telling me that my wind policy is just supplemental and doesnt count as insurance on my property. Is this true?

Answer: You need coverage for wind AND fire, if you check your mortgage documents, and probably flood as well. Probably not just fire, either, but an "all risk" (hate that phrase!) policy. Stuff happens to houses, besides wind, ya know?

Yes, they can do that. You gave them permission when you signed the mortgage documents.

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Can A Lender Or Servicer Force Place Mortgage Insurance?

Question by marindaalexis | Posted in Insurance

I do not mean home owners insurance I mean mortgage insurance... if the mortgage insurance was not authorized and signed at the closing can the lender or servicer force place it at a later date without any consent of the borrower?

Answer: In most states and provinces there is an illegal thing known as tied selling. Tied selling is when a company says "You can only get this if you do this". In some situations insurance falls in the gap and banks will say you need to insure the debt to make sure they get paid (IE: if you are seriously ill and you need to pay your medical bills...if you're lucky enough to not get laughed at by the banker for asking for that...)

In your question, can the bank force you to get it after you sign the peperwork and after your mortgage is inforce. NO: what was signed was signed and they cannot change that contract you signed. When it's up for renewal, possibly, but not before

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Is Forced Placed Insurance Acceptable When Asked If I Have Insurance ?

Question by smoothopr_2 | Posted in Insurance

gettin new auto insurance

Answer: It depends on the Insurance company's underwriting guide lines.

We run a prior insurance report. This is a data base that can let us know your insurance company, policy number, coverage and vehicle info. Not all company's report to this database but if they don't we are required to send your proof of prior to our underwriters.

So really it just depends on the company most will not accept it because most force place insurance only covers damage to the car. No Liability coverage. You might be able to try and see if its works. Don't be mad if they say sorry!

Good Luck!

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House Fire. My Mortgage Co Has Force Place Insurance That I Pay For. Will I Be Paid Also?

Question by Jay | Posted in Insurance

we had a house fire. my mortgage company has forced place insurance. will i be paid for my contents and damages

Answer: No.

Force placed insurance only protects the mortgage companies interest in the property. Force placed coverage does not cover your equity or contents.

Had you purchased a traditional homeowners policy (which should have been much cheaper than the force placed coverage) the mortgage company would be paid for their interest and you would would be paid for any equity and your contents.

Sorry about your loss. But from what you have posted, I don't expect the force placed coverage to pay you for your loss.

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New Tactic for Forced Placed Insurance? Allstate Cancels ...

by Foreclosure Fraud

“They came out and they said they were reducing the policy premium a little bit,” White said of his initial experience with the insurance company. “Then I got a letter, actually my mortgage company got the letter first , saying my insurance was canceled. Standing on the porch of his newly-purchased two-story house on Old Wheat Street, Jason White pulls from his mailbox a long, white envelope. It’s a bill from Allstate–$11 for a canceled homeowner’s insurance policy. “The front yard is completely overgrown,” White says as he walks around his yard, pointing at the house next door. One, a small amount of dry rot on the home’s siding–something White says is small and easily fixed....

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