logo
1-800-604-7249
top

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

« blog home

Forced placed insurance is not for YOU!

Forced placed insurance is not for YOU!

 

I have been in the insurance business since 1978. One of my biggest frustrations is that so many folks think that we here at Nusurance are only trying to sell policies to rip them off. In June of last year a gentleman who was frustrated with Florida’s high cost of insurance decided as we call it “Go Bare” and let his policies lapse. When we called him to follow up he informed us that the Bank had “Given” him coverage at one third of what we were charging him.

His home was insured for $188,000 and the balance of his loan was only $55,000. On the phone he says he was told by the customer service representative that this was the same kind of insurance as we had sold him. Now frankly this was true but what the service rep failed to explain was although the coverage was the same the policy would only cover for the limit of $55,000. The $55,000 was only to cover “Their Interest” which was $55,000.

On January 18 of this year, his home burned to the ground. He called me last week to see what I can do. He was told that his mortgage was paid off and he would be receiving a satisfaction of mortgage letter. But that is the only thing he would receive from the insurance. His home would not be replaced, his personal property would not be replaced and he would have to pay for the hotel his family has occupied for the last week.  Under a standard homeowners policy his home would be replaced up the policy limit, he would be able to go shopping for all new persona property up to ½ of the limit for his home and we would have an additional bag of money of at least 10% (up to 30%) to pay for his hotel and expensed he incurred while out of his home.

Of course he is now looking for someone to sue, we have our communication and copies of quotes we have sent him he beef is with the bank but unfortunately the person was truthful, the coverage was the same what was omitted was the limit and the person who was to be covered. Here the bank was “the person” covered for their interest and THEIR INTEREST ONLY!  His policy had been lapsed for over 7 months – we had called him and quoted alternatives, there was nothing else we could do.

 

 

This entry was posted on Wednesday, February 5th, 2014 at 10:20 pm and is filed under Homeowners Insurance, Riskywire. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.

Comments are closed.

top