Homeowners across Olathe, KS, and other parts of the state might be encountering an unfamiliar term with increasing frequency. At the Mitten Heritage Fraternal Society of Insurance, we’ve seen a recent increase in calls inquiring about "Force Place" insurance. Callers typically learn about it from their lenders following the lapse of home insurance policies. So, what does this term signify, and what measures should be taken to dodge it? Here’s everything you should identify about forced-place insurance.
What is Forced-Place Insurance?
If you hold a mortgage on your home, your lender will likely necessitate you to maintain homeowners insurance. Nonetheless, the lender will be informed if you fail to uphold payments on this homeowner’s insurance or cancel it. At this juncture, they will probably force-place home insurance on the property. Essentially, this infers that the lender will ensure insurance while you must accommodate responsibility for its payment.
The Problem with Forced-Place Insurance
You should undertake every conceivable precaution to evade having forced-place insurance on your home.
- It is EXTREMELY costly.
- It benefits the lender, not the homeowner.
- It only covers the mortgage balance.
- Doesn’t factor in your equity.
- If you miss payments, it could result in foreclosure.
The bottom line is that you must maintain your insurance if you hold a mortgage. You are much better off upholding your personal insurance policy than allowing your lender to force-place insurance on your home.
Get a Home Insurance Quote Today
If you’re feeling the pinch of surging homeowner’s insurance rates in Olathe, KS, we might be able to assist. Contact the Mitten Heritage Fraternal Society of Insurance for a quote today. You might hold options. Give us the chance to assist you.
Comparing Quotes - Made Simple