Fifth Third Bank Force Placed Insurance: A Closer Look

As a homeowner who holds a mortgage, you will be required to have hazard insurance, also referred to as homeowners insurance or property insurance, for your home. This type of insurance is mandated by mortgage companies and the insurance coverage amount must equal the balance of your mortgage.

Hazard insurance helps the mortgage lending company by offering protection for its financial interest in your property. If something happens to your home, such as a fire or storm damage, for example, the insurance policy will help to pay the costs to repair the damage and essentially restores your home to its value before the event.

First Third Bank Force Placed Insurance

First Third Bank, with its headquarters in Ohio, is one such lender that requires hazard insurance for all individuals who hold a mortgage with the company. Like many mortgage holders, First Third Bank also offers a back-up plan if a homeowners mortgage insurance lapses for any reason.

In the event of a lapse in coverage, First Third Bank, and many banks like it, partner with an insurance company to issue a force placed insurance policy on the home. As part of the mortgage agreement, homeowners agree that if there is a lapse in coverage, First Third Bank will place the coverage for them in order to sidestep any lapses.

The Dark Side of Force Placed Insurance

While force placed insurance seems like a great idea in theory, the reality is that some institutions have been accused of taking advantage of homeowners with this practice. Some mortgage companies have partnered with insurance companies and have signed exclusivity agreements.

The problems arise when these companies decide to place excessive, unnecessary coverage on the property, and then turn around and pass the high costs onto the consumer. Some consumers have reported the company took the premium out of their monthly mortgage payment, making them fall behind on their loan, and even forcing some into foreclosure.

The force placed insurance policies are typically double to up to 10 times the amount of the homeowner’s original hazard insurance policy.

Force Placed Insurance Lawsuit Information

A number of lawsuits have already been filed against lenders and insurance companies for allegedly improper practices governing their use of force placed insurance for homeowners. JPMorgan and Assurant were some of the recently named defendants who were accused of force-placing insurance with coverage levels exceeding the necessary amount, landing JPMorgan about $1 billion in “referral commissions” or allegedly illegal kickbacks from Assurant.

Big banks and mortgage companies have also been accused of force-placing outrageous insurance policies on the property, passing along high costs to homeowners. Even though it is a smaller bank, First Third Bank has not managed to skip the accusations of force-placing costly hazard insurance on homeowners.

If you have had a force placed insurance policy imposed on your property by First Third Bank or another bank or lender, you may be eligible for legal compensation. An experienced attorney can help you determine if you qualify to file an individual force placed insurance lawsuit or join a class action lawsuit.  Case reviews are free and confidential.

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.

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