Why is force placed insurance so expensive?
Standard policies are underwritten based on multiple risk factors known to the insurer. The insurer has had the opportunity to underwrite your collateral including risk factors such as condition, experience, age, driving record, prior claims, etc. These and other factors define the risk exposure to your carrier. Force placed (creditor placed) insurance is non-underwritten and provided by the carrier on collateral in their portfolio when it becomes uninsured. Since the exposure to the carrier is unknown, the premiums are often higher for this type of insurance.
