“Force placed insurance,” also referred to as “creditor placed” or “lender placed” is insurance that banks/mortgage companies purchase to cover a home when a homeowner lapses on mandated insurance coverage.
This practice, while legal, has been linked to other unethical, deceitful, and illegal tactics aimed to benefit lenders and insurance providers at the homeowner’s expense.
Placing forced insurance policies on homes already covered by insurance.
Keeping the force placed coverage even after receiving evidence that a borrower has recovered their own insurance.
Purchasing a force placed plan at a rate substantially higher than the current market rate.
Charging homeowners for more that the actual cost of the force placed insurance policy.
Failing to inform the homeowner that their insurance lapsed and setting up force placed coverage without homeowner’s knowledge.
Purchasing the force placed coverage from the bank’s own insurance subsidiary.
Taking commission payment or other incentive from insurance provider for their service.
If you believe your bank or mortgage lender has taken advantage of you through a force placed insurance policy, contact Thomas J. Henry immediately. Attorneys are available 24/7 to talk to you about your rights.