Tag Archives: Insurance
QBE Among Insurers Probed On Forced Home Insurance Policies
The issue is whether bank-affiliated agencies and brokerages are earning fees for doing little to no work, at the expense of struggling homeowners. The probe is also looking into possible conflicts of interest among the banks, their affiliated …
Read more on Wall Street Journal (blog)
eBay Money Maker from Jenison shares how she did it in online video
“If I find something to sell and someone who wants it can't find it in their local area, we make that connection,” she said. “And it's good for me. It's a legitimate way to earn money from home.” G0110EBAYSALE1 . JPG.
Read more on MLive.com
Lighthouse Point, FL (PRWEB) January 12, 2012
Wites & Kapetan recommends that homeowners review their homeowner?s insurance policies to avoid “force-placed” insurance. Most home mortgages obligate the homeowner to maintain a homeowner?s policy that names the bank as an ?additional insured.?
As explained by Marc A. Wites of Wites & Kapetan, P.A., ?Many homeowners may not know ? or may have never reviewed ? this very important clause in their mortgage which provides that, if the homeowner?s policy lapses for any reason ? even accidental oversight ? the bank can take out a policy in its own name only, and charge the homeowner for the premium. These policies are called ?force-placed? policies. They do not cover the homeowner?s interest in the property or their possessions, and usually do not protect the homeowner against other claims for which they could be sued such as those by people injured on their property.”
“Because these policies cover a more limited risk ? the bank?s interest in the property ? one would assume that they would be less expensive than the lapsed homeowner?s policy. In the vast majority of cases, however, that would not only be incorrect, but the limited ?force-placed? policy could be several times more expensive than the homeowner?s policy which just lapsed. Furthermore, the homeowner often does not learn of the existence of this policy until the bank sends an invoice or escrow adjustment months later. By that time, several months of a staggeringly expensive policy will have been billed to their escrow account or added to the loan,? said Alex Kapetan of Wites & Kapetan.
Explanations for These Unreasonable Costs
According to Mr. Wites research, the real reasons for these exorbitant charges vary somewhat depending on the bank and the applicable insurance company but, in many cases, arise because of their close affiliations or exclusive arrangements. Although one would assume that the bank would try to get the least expensive policy available, and not add to your debt. Unfortunately, the opposite is true for several reasons which can include: