“Forced Placement” insurance rates are through the roof

“Forced Placement” insurance rates are through the roof

“Forced placement” is when a lender buys a policy for a borrower at premiums that can significantly increase the price of insurance. If you fail to renew your own homeowner’s insurance and the lender finds out, they will automatically purchase this coverage for you.  The new coverage is more expensive and doesn’t have the same coverage as your homeowner’s policy would. J. Robert Hunter of the Consumer Federation of America, feels the problem began because lenders and insurance companies have “set up sweetheart deals… and get all sorts of kickbacks.”…

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