It could be happening to you. Now, we don’t mean this lightly. In fact, if you have a home mortgage, take a second to read over this information and check your monthly statement — because you could have force-placed insurance on your home and not even know it!
Force-placed insurance is a type of insurance that occurs when a homeowner’s own insurance lapses (legitimately or not). How does your own insurance lapse? Well, it could be by mistake – maybe you changed bank accounts and forgot to change the auto withdrawal information. Or maybe your insurance company forgot to supply the right paperwork to the mortgage company. Nonetheless the slightest lapse gives your mortgage lender license to place an insurance policy of their own on your home.
And that insurance policy is not in your favor.
For starters, it is a policy that you have no control over – yep, you pay for it but you don’t choose it; you don’t get to compare price quotes or study the coverage. You just get it, whether you need it or not.
That’s why we’ve made the list below of things to look out for in your monthly statement. If you see any of these telltale signs below, you may have been charged for force-placed insurance. And what that means is that you are paying much, much more than other homeowners for your insurance and yet be receiving much, much less coverage.
Here’s what you need to watch out for:
Part One: — If your mortgage is with OneWest Bank, BB&T Mortgage, Ally Financial, PHH Mortgage, Ceniar FSB, Fifth Third Bank, Aurora Bank, American Home Mortgage Servicing, Flagstar Bank, Everbank, M&T Bank Corporation, MetLife Home Loans or PHH Mortgage. Watch out! Because, if you: