Florida Tops the Nation in Force-Placed Insurance

Florida tops the nation in force-placed insurance

Florida led the country in its share of force-placed insurance premiums the past three years, including 35 percent, or $1.2 billion, in 2011 — more than three times the amount sold in the next-largest state, California.

That’s according to sworn testimony provided last month for the United States Judicial Panel on Multidistrict Litigation.

Florida has one of the country’s highest numbers of foreclosures, and most people stop paying insurance premiums when they default on mortgage payments. That means a lot of policies are imposed on consumers without coverage.

Force-placed insurance protects lenders against possible losses on property they’ve loaned money for, Florida Insurance Commissioner Kevin McCarty said.

But the coverage has drawn scrutiny from him and federal regulators because the prices often are much higher than policies sold directly to consumers. Many force-placed policies are sold by insurers with unregulated rates or with agreements to provide lucrative commissions or other perks to companies that manage consumers’ loans and impose the insurance — a potential conflict of interest, according to consumer advocates.

“That’s something that needs to be investigated,” McCarty said Friday.

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2 Responses to “Florida Tops the Nation in Force-Placed Insurance”
  1. Come to Miami,federal court Friday 0900hrs ,DEmo, here is how the RE fraud works: Coordinated from Mr Gregory DeChurch, over Wells,BoA,Chase ending with OCwen (William ERbey).Raketeering . Like B.Madoff , Long arm, new victims, finance them a home. AN Insurer gives rapidly a binder,so closing takes place. Madoff is sitting for 152yrs federal prison and Stumpf Moyanham Dimon Erbey,DeChurch soFar not one day.We will have criminal charges registered. Loretta Lynch is going to have to. See Jesse Jackson,rainbowpush.org,he will be fully behind it,all the way. Once the insurer ( FL 4 – point by prospective contractors , licensed and insured!,but bloodrelated))needs inspection,You need to say NO (unless lender comes fwd and offers augmentation of principle accordingly) . They will drop your Policy as the next storm season begins. Servicer will not reveal, who is the lender. Servicer will saY ,HE IS non-bANK . bUT IS PAYING BILLIONS FOR THESE SERVICING RIGHTS. Servicer will purchase in Your name force placed Insurance . You do not pay,it is your right and your duty as consumer, not to pay a product or service that you did not in numbers $$$.00 exactly to agree to pay for , and/or the quality of such service/product is below the agreed expectation. Servicer will then move to the criminal step .Mor criminality than “worthless check” frauds , iN All states many years of incarceration by law to the person doing defrauding.Servicer
    will extort this sum by the threat of foreclosure after backdating 12 month behind your back. Servicer will refuse to accept principle and/or interest payements too . This not only to intimidate you, also to establish Your default.
    The Escrow defrauding becomes a foreclosure fraud. Home is sold again LONG -Arm to the next victim ,which constitutes PONZI scheme.
    Some lawyers and Bankers say,it is ilusive to think these CEO can get their criminal charges served.

  2. Jylly Jakes says:

    No, it’s not that people STOP paying their home insurance. They are told that they have an escrow shortage and to pay for an ENTIRE years worth of insurance in a lump sum, while they foreclose on your mortgage. If you don’t pay the ENTIRE YEARS worth then they force place your insurance. Even when you offer to pay the insurance month to month on your own I was told that was not allowed….Little did I know then. IT”S NOT ANOTHER DEAD BEAT PROBLEM. I literally had an eviction notice ON MY DOOR the day I got the letter informing me to pay a whole year of insurance or be force placed. My mortgage was paid and they still sold my home to themselves. ITS ANOTHER SCAM THAT IS BAILING OUT THE BANKS AT OUR EXPENSE. IT’S NOT THAT PEOPLE DIDN’T PAY THEIR INSURANCE.

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