If you have had your home insurance force-placed on you, please contact our force-placed insurance lawyers at 866-472-9108 as soon as you can.
While every homeowner is required to have home insurance, force-placed insurance is much, much more expensive than any plan that you would be able to find voluntarily. In fact, force-placed insurance may cost homeowners up to ten times more in premiums than voluntarily insurance. And, unfortunately, that higher cost has nothing to do with better insurance. For instance, force-placed insurance often does not even cover owner liability or personal property.
Force-placed insurance may happen to homeowners for a variety of reasons. Force-placed insurance may occur after a lapse in a homeowner’s insurance policy — often by accident — or when a homeowner did not purchase an insurance that covered hazards particular to their area, such as a homeowner in a flood zone who purchased flood insurance better suited for non-flood-prone areas. However, force-placed insurance is also a big money maker for lenders, and is sometimes forced onto homeowners unnecessarily. Likewise, sometimes force-placed insurance occurs after a mistake on the lender’s behalf, not the buyer/homeowner’s.
The Dodd-Frank Act was created after the housing bust to help protect Americans from another Wall Street disaster. But the Dodd-Frank Act only goes so far and, unfortunately, the real harm of force-placed insurance was not remedied by the act. Instead, hundreds of thousands of Americans could be paying way too much for subpar coverage. And some of these homeowners may even be forced into foreclosure because of it.
Let’s stand up for the homeowners who have been hurt by Wall Street. Once, twice, three times too many… it’s time we said that force-placed insurance, it’s just not right and it’s just not working.