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Force-Placed Insurance

What Is Force-Placed Homeowner's Insurance?

Force-placed homeowner’s insurance is a product obtained by mortgage companies to protect the lender’s collateral.  Most mortgage contracts require a homeowner to maintain homeowner’s insurance on the property.  If a homeowner falls upon hard times and allows the homeowner’s insurance to lapse, mortgage companies may force-place the homeowner’s insurance with an insurer of the lender’s choosing.  Mortgage companies are taking advantage of their position of power by force-placing homeowner’s insurance with insurers charging up to 10 times the usual cost of homeowner’s insurance.

Lenders are agreeing to pay exorbitant fees and excessive rates for homeowner’s insurance due to relationships which raise conflict of interest concerns.  For instance, lenders often place the homeowner’s insurance with an insurer owned by the lender or which will pay kickbacks or commissions back to the lender.

Have You Been Saddled With the High Costs of Force-Placed Homeowner's Insurance?

If you answer “yes” to any of the following questions, you may have been unfairly saddled with expensive, unnecessary force-placed homeowner’s insurance coverage:

  • Did your mortgage company force you to pay for expensive homeowner’s insurance?
  • Did the cost of your homeowner’s insurance coverage more than double because of a change in the insurance company?
  • Did you receive an after-the-fact notice about expensive force-placed or lender-placed insurance?
  • Did you receive a large bill or have a large expense added to your mortgage insurance?
  • Did your homeowner’s insurance lapse and your mortgage company replace it with a  more expensive policy?
  • Was your homeowner's or hazard insurance switched to QBE or Assurant without your consent?

Martin & Jones Investigates Force-Placed Insurance Claims

Martin & Jones is investigating unfair and deceptive trade practice claims against mortgage companies arising from excessive charges with force-placed insurance coverage. If your mortgage company recently put force-placed or lender-placed homeowner’s insurance coverage on your property, you may have legal claims and may be entitled to recover money damages. If you have any questions or concerns about force-placed or lender-placed insurance coverage, or if you know anyone who has been charged for force-placed or lender-placed homeowner’s insurance coverage, please give us a call at (800) 662-1234.