Lender-Placed Insurance Coverage
Lender-placed (or Force-placed) insurance is coverage that a mortgage
lender or bank purchases for property it owns to protect its interests when
the homeowner fails to purchase this coverage. This often occurs during
situations of abandonment and foreclosure. The premium cost for this
insurance is usually higher than conventional homeowners’ premium, and this
cost may ultimately be borne by the homeowner.
The high premium costs and the fact that homeowners are often “forced” to
pay for this coverage by the lender (mortgage lender/bank) has increased the
attention for this type of insurance. Fannie Mae and Freddie Mac guarantee a
large portion of the mortgage market nationally and in Florida, and are in
the process of revising their rules to require admitted carriers (not
surplus lines carriers) to insure this business.
Florida Statute for Collateral Protection Insurance: 624.6085, F.S.
American Security Filing
Praetorian Filing
OIR Press Releases
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April 11, 2014: Office Orders Praetorian Insurance Company to Modify its Business Practices for Lender-Placed Insurance in Florida
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October 8, 2013: Office Disapproves American Security Insurance Company’s Lender-Placed Insurance Rate Filing and Issues Order to Decrease Rates
by Approximately $51 Million
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May 9, 2013: Office Announces Public Rate Hearing for American
Security Insurance Company's Lender-Placed Insurance Program
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February 11, 2013: Office Approves Praetorian Insurance
Company's Second Rate Filing for Lender-Placed Insurance
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August 10, 2012: Office issues Notice of Intent to Disapprove
Praetorian’s Rates
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July 2, 2012: Office announced Public Rate Hearing for
Praetorian Insurance Company
NAIC Releases/Consumer Alerts
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August 2012: Consumer Alert: Protecting an Investment: What
Consumers Need to Know About Lender-Placed Insurance
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June 27, 2012: Press Release: Insurers to Hold Hearing on Lender
Placed Business
Fannie Mae Guidelines
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October 1, 2012: SVC 2012-17 – Updates to Hazard Insurance
Coverage Policy
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May 23, 2012: Fannie Mae Effective Date of Lender Placed
Guidelines
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March 14, 2012: SVC 2012-4 - Update to Lender Placed Property
Insurance/Hazard Insurance Claims Processing
Federal Register Notices
Federal Housing Finance Agency
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November 5, 2013: FHFA Directs Fannie Mae and Freddie Mac to Restrict Lender-Placed Insurance Practices
Consumer Financial Protection Bureau
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January 17, 2013: Consumer Financial Protection Bureau Rules
Establish Strong Protections For Homeowners Facing Foreclosure
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August 10, 2012: Consumer Financial Protection Bureau Proposes
Rules to Protect Mortgage Borrowers
Please note - some of these resources were not developed by the Office, and some links will direct you to websites not maintained by the Office.