Sorry I did not get this posted on Monday. Already this is a week. But it's a good week.
Lender force-placed insurance is invariably described as 'more expensive than other insurance which the homeowner/borrower could get on their own'.
Why is LFPI more expensive?
Why is it not the same premium more or less as the cost of purchasing substitute homeowner's insurance? (Something which LFPI most certainly is not, on many levels. One things which prevents it totally from being anything like substitute homeowner's insurance is something which should also make LFPI less expensive: LFPI provides less coverage than a homeowner's policy. Another thing which prevents LFPI from being simply another term for substitute homeowner's coverage: LFPI protects the interests of the lender in the collateral rather than the interests of the homeowner in the home.)
Please Read The Disclaimer. Copyright 2015 by Dennis J. Wall, author of "Lender Force-Placed Insurance Practices" (American Bar Association 2015). All Rights Reserved.