3 Important Steps To Take When You’ve Been Placed Into Forced Market Insurance
Category : Market Insurance
If your mortgage company has suddenly placed you into forced market insurance, you may be wondering what it is and what to do about it. Lender placed hazard insurance is a policy that the financial institution holding your lien takes out to cover losses while your underlying policy is not in effect. There are three important steps you need to take following such notice. Important steps you need to take following such notice.
Contact Your Lender
Reach out to your mortgage company to ask why the policy was placed. It could be that your insurance company hasn’t sent proof, or you could be unaware that your underlying policy has lapsed. Either way, it will help you to know how to proceed.
Contact Your Insurance Carrier
If your lender said the policy lapsed or they didn’t receive proof of insurance, call your insurance company. You may have forgotten to send the payment or the money was disbursed incorrectly from your escrow account. Whatever the explanation, it is important to rectify the situation with them.
Secure Proof of Coverage
Once you’ve sorted it out with your insurance company or your policy is back in force, it’s important to send proof of insurance to your lending institution right away. Upon receipt, the mortgage company will be able to cancel the lender placed hazard insurance and issue a refund, if appropriate.
If you’ve been notified that your lender has secured insurance on your behalf, don’t panic. If you know the steps to take once notified, you can quickly settle the matter.