Forced Place Insurance

The use of carriers like QBE adds another public wrinkle to the controversy over banks' imposition of homeowners coverage, because the carriers are unregulated in major states such as Florida. Wells Fargo, SunTrust Banks Inc. and others are buying what is called "surplus-line" insurance, which is neither governed by state premium caps nor guaranteed by state funds. That leaves the insurer free to charge whatever rates it pleases — and to share some of the proceeds with banks through payments to their affiliates.


http://www.americanbanker.com/issues/176_70/force-placed-insurance-1035821-1.html?zkPrintable=1&nopagination=1


Want to avoid this problem?
1. Keep up your own insurance policy
2. If they cancel you or raise your periums too high- go get Citizen's or some other policy
3. Set up the policy to be paid through your insurance escrow
4. Verify that theis is done with both mortgage company and insurance carrier
5. If you get an occupancy verfication request from the mortgage company fill it out.