"It's probably not addressed as much as it needs to be, but it is a real problem."
Mr. Archie Grant, South Broward (Florida) Board of Realtors, quoted by Dan Sweeney, Sun Sentinel (Ft. Lauderdale), December 16, 2014.
Mr. Grant was testifying before Florida State Representatives from Broward County, Florida (Ft. Lauderdale) who are members of an insurance subcommittee in the Florida House of Representatives. He told them about people whose homeowner's insurance policies supposedly lapsed and whose lenders force-placed insurance on them with much higher premiums. In some cases, Mr. Grant observed, the lenders controlled the force-placing insurance carriers.
A member of the Broward delegation to the Florida House (and a very scarce commodity in Broward County, a Democrat), reportedly suggested that perhaps Citizens Property Insurance Corporation "'can help bridge that gap until that person can get back into the private marketplace'." Id.
The lawmakers are planning to meet with Citizens' representatives this month to discuss their ideas about the increasing costs of wind and flood insurance for Florida residents.
The author is at work on a book on "Lender Force-Placed Insurance" which the American Bar Association has scheduled for publication this Spring.
The author wishes to thank Mr. Dan Luby of Orlando for alerting me to this story. Mr. Luby is an avid reader of this insurance blog and his input is always gratefully appreciated.
Copyright 2015 by Dennis J. Wall. All rights reserved.