Force Placed Insurance or Lender Placed Insurance Class Actions
What is Force Placed Insurance?
When a homeowner’s insurance policy lapses, the lender or mortgage servicer may force place insurance on the property through a force placed insurance provider. Typically, the force placed policy chosen by the lender provides less coverage than a standard homeowner’s policy which can be obtained in the open market. Yet the cost of the force placed insurance is several times greater than the cost of voluntary homeowner’s insurance. The increased cost is due, in large part, to fees and commissions (or kickbacks), tracking services, and other quid pro quo arrangements between the lender/ mortgage servicer and the force placed insurance provider. The high cost of the force placed policies is passed on to the homeowner. Sometimes the additional and exorbitant price of the force placed policy drives the homeowner into foreclosure.
Giskan Solotaroff & Anderson LLP is involved in class actions on behalf of homeowners who have been charged for force placed or lender placed hazard, hurricane, and wind insurance by the following lenders and/or mortgage servicers:
- Financial Freedom
- CIT Bank
- Sun West
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