Forced-Placed Insurance Lawyers

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Forced-Placed Insurance Lawyers

Home and businesses pay property insurance to protect against financial losses related to damage to personal items and liability from injuries that occur on property.

Homeowners are required to maintain adequate property, or homeowners, insurance. If the homeowner allows the property to lapse, the loan servicer may take matters into its own hands to protect the property.

What Is Force-Placed Insurance?

Force-placed insurance, also called lender-placed insurance, is insurance placed on the home by the mortgage lender. The lender then adds the cost of the insurance on the mortgage payments.

When Will a Lender Put Force-Placed Insurance on My Home?

There are specific instances where a lender will add insurance onto a homeowner’s property:

Is Force-Placed Insurance Expensive?

Yes. It increases monthly mortgage payments that can push a homeowner who is having difficulty making payments closer to or into foreclosure.

Will Having This Type of Insurance Provide Me with More Coverage?

No. The forced homeowner coverage provides less coverage than a policy an owner obtains on their own. This is because it covers different risks that a normal policy. Typically, force-placed insurance will not provide coverage for damage to personal property or liability.

Will I Be Informed of the Forced Insurance?

Yes, whenever a lender places a homeowner on their forced insurance policy, they must notify the homeowner. The notice must tell the homeowner:

Do I Need a Real Estate Lawyer for My Insurance Problem?

Yes. Forced-placed insurance is a complex issue to resolve especially when you have insurance already on the property. Contact a real estate lawyer to understand your legal options.

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Last Modified: 10-26-2015 10:26 AM PDT

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