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#1947597 - 07/30/14 09:31 PM force placed insurance
kimmie10 Offline
Member
Joined: Jul 2011
Posts: 50
what happens if you force place too early?

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Flood Compliance
#1947653 - 07/31/14 01:06 PM Re: force placed insurance kimmie10
Carolina Blue Offline
Platinum Poster
Carolina Blue
Joined: Jul 2005
Posts: 960
Lost in a regulatory fog
If by too early you mean while there is still an effective policy on the property, then you should cancel the force placed policy. If there is any premium from it the bank will have to pay it.

If by too early you mean during the 45 day notification wait, then there should be no issue as long as you give the borrower the full 45 days to obtain their own insurance and only charge them for the force placed insurance on the 46th day (assuming they didn't get their own during that time period).

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#1948044 - 07/31/14 09:03 PM Re: force placed insurance kimmie10
WI Banker Offline
Gold Star
Joined: Dec 2006
Posts: 253
Can you tell us more about the situation kimmie10?

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#1949470 - 08/06/14 12:38 PM Re: force placed insurance kimmie10
kimmie10 Offline
Member
Joined: Jul 2011
Posts: 50
Say policy exipires 1/1 and we force place on 1/1 not 1/2.

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#1949474 - 08/06/14 12:52 PM Re: force placed insurance kimmie10
rlcarey Online
10K Club
rlcarey
Joined: Jul 2001
Posts: 83,227
Galveston, TX
What happens? Nothing. However, you better not be charging for that day's premium or however the long the overlap might have been.
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