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What typically happens is the Lender will place insurance that is costly and only protects them and you get to pay for it.
One dirty secret is Insurance is much harder to get if you have been cancelled or presently don't have any.
On the other hand... there are a lot of companies that write policies... some States even offer minimum coverage to meet Lender requirements... in California it is called Fair Plan.
To make a long story longer I cancelled the insurance and ended up with Citizens, the Fla state pool that most people were getting at that point because it had the lowest rates and sometimes was the only insurance people could get. Eventually, and due to our insurance industry-loving governor Scott, everyone started getting dumped from Citizens,and put with companies nobody ever heard of. We sold our house, so I don't know what the situation is now, but I do know Fla pays ridiculous rates for coverage even though a hurricane hasn't really hit in years.
This isn't correct; you can't be unilaterally dropped from Citizens. When they make the decision to transfer you to one of those little-known companies that no one ever heard of, they send a notice to the homeowner advising you of this decision; you then have an opportunity to reject the transfer by signing and returning the opt-out form. If you fail to return the form, then and only then is your policy transferred.
I live in a high-rise oceanfront condo on Miami Beach and have been insured by Citizens ever since I purchased it in 2012, so I know how the process works. The one thing about the process that really perturbs me is that I get these notices from Citizens 2-3 times/year and there's no way I know of to stop them from trying to transfer my policy. I just checked my records and found that I last sent in the opt-out form on October 23, 2015, and I just received a letter from Citizens yesterday that they are trying once again to transfer my policy to the same insurance company I just rejected (Heritage).
By the way, homeowner insurance premiums are dropping since there haven't been any hurricanes in the past 10 years anywhere in Florida. My Citizens premium decreased 14.4% on its last renewal in November.
What typically happens is the Lender will place insurance that is costly and only protects them and you get to pay for it.
One dirty secret is Insurance is much harder to get if you have been cancelled or presently don't have any.
On the other hand... there are a lot of companies that write policies... some States even offer minimum coverage to meet Lender requirements... in California it is called Fair Plan.
Not only that but if the Lender cannot find insurance they will SELF insure for you which is incredibly expensive.
I had 7 shingles damaged from wind... the roofer left a bundle 19 years ago and I use 7 from the bundle to replace the damaged ones last year... looks great a year later.
Quaker15 - What company dropped you? Was it one of the big boys?
Yes!
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