The [ugly] Truths Of Force-placed Homeowners Insurance

By Author: Jay Bilas
Total Articles: 5
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Some of us know we have it…….some don’t realize they have it……and most don’t know exactly what it is. (If only your wallet could talk……)

“Force-placed” Insurance, a well-known [dreaded] term of the insurance industry, refers to any type of home-related insurance (i.e., homeowners, windstorm and/or flood) that a mortgage company “places” upon your loan. In other words, the mortgage company selects and purchases the insurance for you, and you are then billed for the same through your monthly mortgage payments.

Homeowners Beware! Although this concept may seem harmless and/or easy, it is neither! To assist in clarification of some general misconceptions, please note the following [ugly] truths!:

[Ugly] Truth No. 1
Mortgage companies do not compare rates for you, and worse, force-placed insurance is often double or triple (or more!) the price of a traditional insurance policy!

[Ugly] Truth No. 2
Force-placed insurance does not provide any coverage for your contents, period.

[Ugly] Truth No. 3
Force-placed insurance only provides actual cash value ...
... for your home’s structure--not replacement cost!

[Ugly] Truth No. 4

Force-placed insurance can result in skyrocketing monthly mortgage payments!
[Ugly] Truth No. 5

Upon discovery at any time throughout the term of your mortgage, mortgage companies may impose back-dated force-placed insurance!

[Ugly] Truth No. 6
Force-placed insurance can be a hassle to remove (i.e., long call wait periods/communication with mortgage companies, obtaining and sending accurate, acceptable documentation to the mortgage company’s satisfaction, directing said information to all necessary mortgage company departments, correction of monthly mortgage payments).

[Ugly] Truth No. 7
It can happen to anyone—even if you maintain an insurance escrow account with your mortgage company (i.e., your mortgage company did not receive the required evidence of the insurance, or worse, you believed you had insurance but you actually did not—possibly due to lack of company and/or agency communication)!

[Ugly] Truth No. 8
Once you have it, you may not be eligible for certain companies until a stipulated period of time has passed (i.e., one year from the date of removal of the force-placed insurance policy).

AND NOW, THE GOOD NEWS…
We at Freedom Insurance are top-notch experts in the field of force-placed Homeowners insurance. Our highly-skilled agents solve even the most difficult force-placed issues, always swiftly and with ease, and always to the collected satisfaction of clients, mortgage companies and homeowners-related insurance companies alike. Example: Just last week, a potential client called us for assistance with her $5,657 force-placed insurance policy (Yikes!) We are pleased to report that upon determination of an available policy (which even offered additional coverage) with an annual premium of only $1,550, she has now joined our family of satisfied customers.

And, unlike other agencies, we at Freedom Insurance go one step further in the prevention of force-placed insurance for our clients. Our numerous pro-active approaches include stringent mortgage company communication guidelines, client-based renewal reminders—both orally and in writing, and the preparation, monitoring and forwarding of policy endorsements throughout the policy term, to name a few.

STOP THE MADNESS!

Force-placed insurance = Rapid, Unnecessary Wasting of your Hard-Earned Dollars. No one should have force-placed insurance. If you do, call us NOW. Let us help you stop the madness.

Freedom Insurance - your wise choice!

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For more information about Homeowners insurance please follow this website www.freedominsurancefl.com.