Miami Force-Placed Insurance Lawyers
If you are a homeowner and have had “force-placed insurance” (insurance purchased by the bank/loan company for you) on your loan, you may have a case against the bank/loan company. Banks and loan companies that provide mortgages and car loans have a practice of purchasing insurance and charging the borrowers of either home mortgages or car loans prices far above market value. If force-placed insurance is purchased while the homeowner is trying to find adequate coverage, it could be considered bad-faith insurance for denying the homeowner the right to receive benefits or adequate time to find replacement coverage.
What is Force-Placed Insurance?
Force-placed insurance means that the banks or loan companies purchase insurance for the homeowners or the car owners when the banks/loan companies believe that the borrower has not purchased the proper insurance. This tends to be purchased when foreclosure or abandonment occurs, the homeowner failed to maintain adequate homeowners insurance due to cancellation, simple oversight, or a withdrawal from their insurer. Many times, the policies that lenders will purchase and charge to the borrower are much more expensive than a policy that the borrowers could have purchased on their own. The types of policies that have been purchased include hazard insurance and flood insurance for homes and lender-placed insurance for automobiles.
These over-priced policies, while covering the lender, do not tend to cover all the homeowner needs to cover. They typically do not cover personal items or owner liability and therefore have a higher risk; resulting in higher premiums. Before these policies can be purchased by the lender, they must provide the homeowner with certain notices making them aware of the situation they are currently in. If these notices are not made and the homeowner is unaware of the policy being purchased, the lender may have acted in bad faith. To know the validity of your claim and how you can fight bad-faith insurance practices, call our offices today.
Our Miami Force-Placed Insurance Lawyers
If you have been a victim of this practice, you may have a cause of action to recover the difference between what you were charged and what a policy would have cost in the open market. Make sure insurance companies are not taking advantage of you or your loved ones. For a free consultation please call Dolan Dobrinsky Rosenblum Bluestein, LLP today. We do not charge a fee unless we obtain a recovery for you.