Posted: Sat Oct 18, 2008 2:23 am Post subject: How soon after Hurricane Ike can insurance be purchased?
Home damaged by Hurricane Ike. Home has forceplacement Insurance issued by the financial inst. Financial Inst. states that the homeowners are not insurered the bank is? What does that statement mean? When can the borrower have their own insurance again? Are there insurance co. that will write the ins. policy when the house is still in its damaged condition?
Any one have any suggestions on where to begin? I feel that the financial inst. has the power but I am paying 1,300 a month? What are my rights in Texas. Oh, by the way the financial inst. will not give or share the policy that I have been paying on with me. I was able to get the coverage page but neither the Ins. co. or the lender will send me a policy. Home payment and force placement ins. is electronically paid through my act. Have not been late ever. Lien is several years old
It means the bank gets paid for any losses...it also usually means it's VERY EXPENSIVE and you will be paying that bill..
Contact the TX dept of insurance...they have a web site and consumer hotlines...they can help quickly straighten this out...
ps. I'm so sorry about your misfortune but glad you and your family are ok.. _________________ **************************************
Life gaurantees a chance NOT a fair shake
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FIND a way EVERY day to lighten the load of another
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If she is paying the insurance how is the bank the one getting paid for the losses? If she doesn't get the money then how will she repair her home. Either I am not getting this or if I am this just doesn't seem right.
firey - this is exactly why force-placed insurance is something that needs to be avoided. The mortgage company/bank is the one who puts the insurance on the house - usually through their own insurance company (I have even seen them "self-insure" the home). They want to make sure they get the money if something happens. _________________ Life moves pretty fast. If you don't stop and look around once in a while, you could miss it. - Ferris Bueller
So the bank pays to insure the home? If this is the fact why wouldn't a person add soem protection of their own. My first red flag would be when I didn't get a copy of the policy. Up until now I never even heard of "force-placed" insurance.
Force placed is always waaaaaay more expensive than "normal" insurance. It's tacked onto the mortgage payment...and the homeowner knows.
Someone wouldn't add more in addition to force placed. They would get their own instead - again, because it's much cheaper. _________________ Life moves pretty fast. If you don't stop and look around once in a while, you could miss it. - Ferris Bueller
Do mortgage companies or banks actually make a home owner buy force placed or is it their decision? I can not imagine why anyone would even choose that route if they didn't have to...makes no sense..more expensive and the bank gets the money if anything happens.
Happens a lot with cars...if you let your policy lapse then the bank will put ins on it...usually NO liability just comp and collision on cars and probably dwelling on HO's it's all about protecting THEIR (the banks) interest...can't blame 'em really. And the borrower WILL have to pay for that ins at some point...it's just tacked on to the note. _________________ **************************************
Life gaurantees a chance NOT a fair shake
**************************************
FIND a way EVERY day to lighten the load of another
**************************************
Oh I get it now. So this usually happens because the insured fail to keep up with the insurance and payments? Then I guess if they have to pay more they will then understand why it would have been btter to just keep their own insurance and make the payments.
right... _________________ **************************************
Life gaurantees a chance NOT a fair shake
**************************************
FIND a way EVERY day to lighten the load of another
**************************************
Kudos for Darla..or I ,mean fireyone....guess it didn't take a brainiac to figure out with the word "forced" what it meant but these days you never know.
