In November 2013, a federal judge granted Assurant Inc.’s motion to dismiss a force-placed insurance lawsuit filed against the company and Cenlar FSB by a Florida homeowner.
Plaintiff Thomas M. Curtis filed a force-placed insurance lawsuit against Cenlar FSB and its associates in April 2013, claiming the company illegally force-placed insurance plans on his Florida property.
According to the Cenlar force-placed insurance lawsuit, Curtis purchased a second home located in West Palm Beach, Fla. in December 2008 using a home loan through the Federal Home Loan Mortgage Corporation (also known as Freddie Mac). This mortgage was then serviced by Cenlar FSB.
As per the mortgage agreement, Curtis bought homeowners insurance, which he renewed every year without allowing the policy to lapse. However, in October 2012, Curtis received a letter from Cenlar stating he was required by the terms of his mortgage agreement to buy wind insurance, which his current homeowners insurance did not include.
According to the force-placed insurance lawsuit: “Curtis responded that wind coverage was not specifically required by his mortgage and that Cenlar had accepted his insurance policy for the prior three years. Following Curtis’s refusal to purchase wind coverage, Cenlar purchased a policy which included wind coverage on his behalf at an annual premium of $7,512.91, which was billed to Curtis’s escrow account. That policy was issued by American Security, a co-defendant and movant here. American Security is a subsidiary of Assurant, also a co-defendant and movant here.”
On April 4, 2013, Curtis filed the Cenlar FSB force-placed insurance lawsuit and alleged that Cenlar and Assurant had business arrangements set that resulted in the inflated price of the force-placed insurance policy.
Assurant fought back, claiming that Curtis did not have grounds on which to sue Assurant.
Based on legal arguments, the judge agreed that Curtis did not have enough legal standing to sue Assurant and tossed the allegations against American Security and Assurant. However, the claims against Cenlar FSB in this force-placed insurance lawsuit still stand.
The Cenlar FSB Force Placed Insurance Lawsuit is Curtis v. Cenlar FSB, et al., Case No. 13 Civ. 3007, in the U.S. District Court for the Southern District of New York.
What is Force-placed Insurance?
During the time that a home property is mortgaged by a bank or lender, the lender will require that a homeowner have insurance that will cover the cost of repair should a natural disaster such as a flood, tornado, or earthquake occur and damage the property.
When a mortgage lender determines that a property does not have sufficient insurance to protect the house from damage or natural accidents, it may take out an additional insurance policy and force-place it on the mortgaged home. It is then the homeowners responsibility to pay the monthly premium on the force-placed insurance policy. It is within the mortgage lender’s rights to force-place insurance in order to protect its investment.
While force-placed insurance practices are not illegal, a company cannot take out an insurance policy and charge more than what would be required to insure the house. Additionally, some lenders, like Cenlar FSB, have been charged with taking out and force-placing unnecessary insurance policies in order to receive kickbacks from insurers.
Notable lenders who have allegedly overcharged for force-placed insurance or illegally placed a force placed insurance plan when an individual already adequately insured their home include:
- Wells Fargo
- JP Morgan Chase
- HSBC
- Citibank
- Ally Financial
- Fifth Third Bank
- BB&T Mortgage
- PHH Mortgage
- OneWest Bank
Join a Free Force-Placed Insurance Class Action Lawsuit Investigation
If you paid for force-placed insurance from a lender, you may be eligible to join a free class action lawsuit investigation into the improper charges you may have paid. Some of the banks being investigated include Ally Financial, PHH Mortgage, OneWest Bank, MetLife Home Loan, BB&T Mortgage, Cenlar FSB, and Third Bank. Submit your information now for a free and confidential case evaluation to see if you qualify at the Home Force-Placed Insurance Class Action Lawsuit Investigation.
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One thought on Cenlar FSB Can’t Escape Force-Placed Insurance Lawsuit
Forced place insurance, bought after I purchased it, claiming they could back date insurance for period I did not have it. Against terms of my mortgage. Never had windstorm for 20 years until they noticed me I had to have it in Novemger 2025. They gave me until January 23, 2025 and I gave them policy on January 17, 2025. They purchased insurance for me on January 29, 2025, against my mortgage which states they cannot purchase unless I don’t have it. They reduced amount from over $20,000 to 9k to 3,600. They are claiming that they have right to back date the insurance for period I did not have it. They have misrepresented in letters I never gave it to them. But they admitted I gave them hazard on January 17. The policy had both wind and hazard. Only one submitted and it had both. They have buried themselves a few times over last two months.
I am practicing attorney for 32 years, but wanted to see if a class action would be a possibility. They have a form letter telling all that they can charge for the period there was no coverage. Even mortgage states they have to give notice when trying to enhance my insurance. Those letters don’t apply to most mortgages I have seen. They are misrepresenting the terms of peoples mortgages.