Force-placed insurance is a specially-designed policy that is placed directly on a home if the property owner has experienced a cancellation of insurance that they had on the property, the insurance has experienced a lapse, or it is considered to be an insufficient amount of insurance.
This type of insurance is also referred to as “creditor-placed”, “collateral protection”, or “lender-placed”. It is placed on the home by a lender – be it a bank, a service that covers a loan, or another type of financial institution. It is designed to allow the company who provided a loan on the property to protect the financial-based interest that they have on said property.
This insurance typically does not include coverage for personal items or owner liability. Additionally, it is often quite a bit more expensive than insurance that a property owner may obtain on their own.
Steps to Take
If you are reading this, chances are, a lender has placed force-place insurance on the property that you own. You should take the following steps immediately:
- Contact an insurance company right away in order to obtain a new policy on your property. If you had a previous policy, contact the provider of that policy and make an attempt to have it reinstated.
- Make the payments as outlined on the force-placed insurance – even if you are in the position that you feel as if the lender has made some type of mistake.
- For disputes associated with a loan account on your property, submit a Qualified Written Request or “QWR”. This will allow you to obtain any necessary information pertaining to your account.
Housing Counseling Assistance
For little to no money at all, you may be able to obtain the assistance of a housing counseling specialist. Not only are these individuals able to work on a negotiation (if it is required) with your lender, they may also be able to help you obtain free or low-cost legal aid in the area where you reside.
In the State of New York, there are many resources available when it comes to force-placed insurance. Examples of these include – but, are not at all limited to – the following:
- DFS Website
- The Homeowner Protection Program at 855-466-3456
- HOPE NOW at 888-995-HOPE
- Dialing 311 (For New York City Residents Only)
- The New York State Bar Association
- Legal Services in New York
Let Us Help
We here at Modica Associates Insurance offer affordable, comprehensive homeowner’s insurance. If you find that you have had force-placed insurance issued on you, simply give us a call today.
We will help create a customized insurance plan for you that will not only be able to protect you and your interest, but that will protect your lender and their financial interests on your property.
We also cover the personal property in your home – be it jewelry, money, gold, securities, electronics, furniture, or food spoilage. For more information or to get started on your new homeowner’s policy, contact us today by calling: 718-855-1836