New Florida force-placed insurance regulations now in effect

Force-placed insurance - Regulations

As of last weekend insurers and mortgage lenders have new rules to which they must comply. Starting on July 1, Florida force-placed insurance regulations have been updated, requiring insurers and mortgage lenders to face certain tighter restrictions on the implementation of those policies. The change is the result of a new bill approved by Florida lawmakers earlier in 2023. House Bill 793 took effect at the start of this month, with the intention of banning what some have referred to as lender “double dipping.” That occurred when lenders put force-placed…

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Force placed insurance most common in Florida

Forced Placed Insurance

California came in second for the state with the most premiums collected. According to sworn testimony regarding force placed insurance, before the United States Judicial Panel, Florida has the largest share of premiums from these policies. Its share was 35 percent of the entire country in 2011, equaling about $1.2 billion. The state was among the highest for home foreclosures in the country, and the majority of people whose mortgage payments defaulted also stopped paying their insurance premiums. This meant that many people had the force placed policies imposed in…

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