Tag Archives: Force-Placed Insurance

I have a Lender-Placed Insurance Policy; What Happens to My Homeowners’ Insurance Claim?

Some homeowners may have lender-placed insurance policies, also known as “creditor-placed” or “forced-placed policies.” These policies occur when there is an insurance policy placed by a bank or mortgage company on a home when the homeowners’ insurance policy may have lapsed or is deemed insufficient by the bank. Under these lender-placed insurance policies, the bank … Continue Reading

What is Force-placed insurance?

Force-placed insurance is an insurance policy placed by a lender, bank or loan servicer on a home when the property owners’ own insurance is cancelled, has lapsed or is deemed insufficient and the borrower does not or cannot obtain another policy. They are also known as “creditor-placed, lender-placed or collateral protection” insurance.… Continue Reading

Force-Placed Insurance Class Action Survives Motion to Dismiss

I recently blogged about the issues regarding forced-placed insurance policies, how you can prevent them, and why insurance companies benefit from these types of policies. On August 6, 2015, U.S. District Judge Kenneth Marra denied a motion by Deutsche National Bank Trust and the American Home Mortgage Investment Trust (AHMSI) ruling that homeowners could pursue … Continue Reading

Are Lenders Properly Protecting Themselves and Property Owners When Property Insurance Lapses? – Force Placed Insurance Series

When a borrower fails to obtain or maintain proper hazard, flood, or wind/hail insurance on property that secures a loan, the lender remains authorized to “force place insurance” on the property in order to protect the lender’s interest in the property. Sounds reasonable… right? On its face, it makes sense that lending institutions should have … Continue Reading

Third Party Beneficiary Status Under a Force-Placed in Texas

Banks and mortgage companies regularly buy what is known in the insurance world as “force-placed” insurance coverage. This type of coverage protects a mortgagee’s interest in the property should no other insurance coverage apply. In other words, force-placed insurance ensures that a property is covered, regardless of the circumstances. Most force-placed policies are made between … Continue Reading
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