If you’re a homeowner in Overland Park, KS, you’ll want to avoid being faced with force-placed insurance from your mortgage provider. But what is force-placed insurance, and how can you avoid it? Here’s what HighPointe Insurance Services LLC wants you to know.
What Is Force-Placed Insurance?
If your home is financed, your mortgage company likely requires you to carry homeowners insurance to protect their financial interests. If you fail to maintain insurance coverage, the mortgage provider may purchase force-placed insurance on your behalf and add the cost to your mortgage payments.
The Downsides of Force-Placed Insurance
- It’s expensive: Force-placed insurance can cost two to three times more than the insurance you can secure on your own.
- It may not fully protect your property: Force-placed insurance typically only covers the lender’s interests, leaving you without coverage to rebuild or protect your equity in the event of a loss.
- Risk of losing your home: Since force-placed insurance is added to your mortgage, failure to make timely payments could lead to foreclosure.
How to Avoid Force-Placed Insurance
Avoiding force-placed insurance is simple: maintain active homeowners insurance on your property. Keep your payments up to date, and ensure you secure new coverage if your policy is canceled or non-renewed. These steps can help you avoid the high costs and limited protection of force-placed insurance.
Contact HighPointe Insurance Services
If you’re a homeowner in Overland Park, KS, and are facing force-placed insurance, reach out to HighPointe Insurance Services LLC. We can discuss your options and help you get back on track with the protection you deserve.
