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(USGovernment-News.Com, July 19, 2012 ) New York, NY – The attorneys working with ClassAction.org are looking to hear from property owners who believe that their lender forced them to pay for backdated, duplicate or otherwise unnecessary wind insurance. Allegations have surfaced that banks and mortgage lenders are taking advantage of their ability to force place insurance, making their borrowers pay for unnecessary or unfair coverage which reportedly costs up to ten times as much as policies they could have bought themselves. Property owners who were subjected to these practices may be able to file a claim to seek compensation for the high premiums paid out for this coverage, among other damages. If you believe you were forced to pay for an unfair or unnecessary wind insurance policy, receive a free, no obligation evaluation of your claim by visiting http://www.classaction.org/force-placed-wind-insurance.html and completing the form on the right.
While banks are permitted to force place insurance when existing coverage lapses, consumers have reached out to the media and legal representation to voice their complaints about this authority. According to reports, one borrower allowed his windstorm insurance to lapse after hearing that his bank no longer required such coverage. He assumed that if a wind policy was required, he would receive notice from his lender. When no letter arrived, he thought he had saved himself nearly $2500. He then received a notice telling him to purchase windstorm insurance and he complied; however, another letter reportedly stated that since the policy lapsed for the previous year, he would be charged retroactively for the insurance, said to cost nearly $12,000.
In a similar case, one Florida consumer claimed that her bank force placed a retroactive hurricane policy – for a year in which no hurricanes were recorded – following an error by her insurer which caused her existing coverage to lapse. In addition to covering a time period which already passed, this policy also reportedly included wind and flood coverage, even though her policy for these hazards never lapsed. Complaints over force placed wind insurance is not limited to retroactive coverage. Another Florida resident claimed that he was forced to pay nearly $4500 per year for a force-placed policy even though he was already insured. The lender-placed policy, which covered hail and wind damage, reportedly cost twice as much as his regular, comprehensive policy.
A conflict of interest may lay behind these alleged practices, as some mortgage companies own the insurance company providing this coverage or receive kickbacks in exchange for giving an insurance company their business, according to recent allegations. If you believe you were subjected to these practices, visit http://www.classaction.org/force-placed-wind-insurance.html to receive a free evaluation of your claim.
About Class Action.org
Class Action.org is dedicated to protecting consumers and investors in class actions and complex litigation throughout the United States. Class Action.org keeps consumers informed about product alerts, recalls, and emerging litigation and helps them take action against the manufacturers of defective products, drugs, and medical devices. Information about consumer fraud issues and environmental hazards is also available on the site. Visit http://www.classaction.org today for a no cost, no obligation case evaluation and information about your consumer rights.
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