Forced Placed Flood Insurance
- Thread starter Okay2Risk
- Start date
- 7,790
What.....no responses? :(
- 1,076
Like any other force placed insurance, if you have a loan and you have not provided evidence of insurance... the lender will secure coverage to protect their interests and charge you for it. If your home/property is in a flood zone and the lender requires flood insurance and you don't secure it... they will secure it for you. The cost and terms are generally not as favorable as what you can secure on your own.
- 409
That's an understatement. The rate is usually FAR higher because the policy is issued without underwriting. I've seen someone who could have had flood insurance for about $600 per year get force placed and end up with a policy that was $3,400 per year. It's usually not as bad with a basic home policy. But it's usually still quite a bit more. Something else about force placed policies is they usually only cover the building itself, and quite often only for the amount you owe the bank. The bank doesn't really care about insuring your contents or equity (assuming you have equity)
The moral of the story is, don't let yourself get force placed.
- 15,041
Wow, pretty insightful. Nice to see such an informative post from someone new to the forum. Please keep it up!
- 7,790
Vol, would you expect less from him? After all, he's from Pennsylvania despite the default Alabama flag.
- 15,041
There are so, so many things I could say to this, but I won't. Now if you could just teach him to set his flag right.
avaloninsurance
Expert
- 64
Wells Fargo isn't the only bank who will not allow coverage to be based on the loan.
kylewhite214
New Member
- 16
Forced place insurance pertains to insurance taken out by a bank or creditor on uninsured debtor's behalf on a property placed as collateral. In case the property is damaged, finance is available to repair it. This type of insurance is most common with flood insurance; the flood insurance regulations of each agency give notification process that must be followed.
FloridaFinancial
Expert
- 66
Can anybody sell the forced placed insurance?
Could I hook up with a mortgage company and do their "force placed" or is it carrier only?
Could I hook up with a mortgage company and do their "force placed" or is it carrier only?
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