Bank of America has been hit with a hazard insurance lawsuit claiming that the bank abused its authority when it forced placed hazard coverage on its borrowers. Allegedly, Bank of America is forcing borrowers to pay for forced placed hazard insurance even when their loan documents do not require it. Furthermore, it has been alleged that Bank of America’s subsidiary is receiving a commission for these forced placed policies and even issuing backdated or retroactive insurance for periods of time which have already passed.
If you had a costly or otherwise excessive hazard insurance policy forced placed by Bank of America or any other lender, you may be able to file a claim seeking compensation for damages.
Bank of America Forced Placed Hazard Insurance Lawsuit
The Bank of America lawsuit for forced placed hazard insurance was filed on behalf of borrowers who allegedly had an over-priced policy forced placed on them when their coverage lapsed. In some instances, the forced placed hazard coverage was backdated to the date the original policy expired. Property owners who have forced placed or backdated hazard insurance imposed on them required them to insure against the past, consequently placing a monetary burden on an individual who may have already been struggling financially.
Lawyers for Forced Placed Hazard Insurance
Many lenders require that borrowers carry hazard insurance on their property. Should this coverage lapse, the lender has the ability to purchase a policy, or "force place" coverage, on the customer. These policies are often more expensive than coverage the property owner could have purchased themselves, while at the same time providing less coverage. In light of allegations that certain financial institutions are abusing their ability to force place insurance, ClassAction.org would like to hear from Bank of America customers or any other borrower to help determine if they've been taken advantage. Potentially, these individuals may be able to participate in a forced placed insurance lawsuit to seek compensation for the high costs associated with their policy.