What is force placed insurance?
Force placed insurance provides coverage for the structure only and does not cover contents, damage due to earthquake or flood, theft, or injury to persons or property for which you may be liable. The premium charged for force placed insurance can be substantially greater than that charged through a standard insurance company. After Charter pays the premium on the force placed insurance, your escrow account is reanalyzed and your payment will be increased accordingly.
Force placed insurance is coverage that has been obtained by the lender when the customers insurance has lapsed or been cancelled, or proof of the customers insurance has not been received. Force placed insurance is necessary to protect the lenders interest in the property if damage was to occur and the customer had not maintained adequate coverage. It is typically more expensive than insurance coverage the customer purchases because it must cover all properties, in all locations, and in all conditions. Force placed insurance does not provide coverage for contents or liability.
Force placed insurance is a policy that Bogman purchases on your behalf only when we are notified that the Homeowners Insurance policy you purchased has been cancelled for a reason other then lack of payment. There can be many reasons for cancellation so you should always contact your insurance agent if you receive such a notice and resolve the matter quickly. Force placed insurance only covers us (the holder of the mortgage) and does not include coverage for your belongings or any valuables that you may have in the property. Plus this type of insurance is very expensive. We pay this policy from your escrow account. Bogman will always attempt to contact you and instruct you to pursue a direct purchase of proper homeowners insurance before we will force place coverage. So to avoid the additional expense and risk of personal property loss, you should immediately try to resolve any insurance cancellation issues.
Force placed insurance is a policy that Bogman purchases on your behalf – only when we are notified that the Homeowner’s Insurance policy you purchased has been cancelled for a reason other than lack of payment. There can be many reasons for cancellation so you should always contact your insurance agent if you receive such a notice and resolve the matter quickly. Force placed insurance only covers us (the holder of the mortgage) and does not include coverage for your belongings or any valuables that you may have in the property. Plus this type of insurance is very expensive. We pay this policy from your escrow account. Bogman will always attempt to contact you and instruct you to pursue a direct purchase of proper homeowner’s insurance before we will force place coverage. So to avoid the additional expense and risk of personal property loss, you should immediately try to resolve any insurance cancellation issues.
