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#2244985 - 11/02/20 11:37 PM Flood Insurance on Escrow?
Nicole Offline
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Joined: Nov 2018
Posts: 130
We have a customer that has flood insurance on escrow. Her policy is really expensive and she wants to cancel it, we told her it's required and it will be paid out of her escrow account. If she does cancel, do we force place? Do we pay it? Not sure how to handle a canceled escrow flood insurance?

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Flood Compliance
#2244987 - 11/03/20 01:58 AM Re: Flood Insurance on Escrow? Nicole
David Dickinson Offline
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David Dickinson
Joined: Nov 2000
Posts: 18,762
Central City, NE
I'm not sure of what you mean by "flood insurance on escrow". If you mean you are escrowing for her flood insurance, don't let her cancel it.

If you mean something else (I don't know what that is, but please explain) and she cancels, then you need to force place insurance.

We need more info.
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David Dickinson
http://www.bankerscompliance.com

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#2244991 - 11/03/20 11:54 AM Re: Flood Insurance on Escrow? Nicole
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 78,971
Galveston, TX
1. You get the bill, you pay it out of escrow,
2. If she later cancels it, you force place.
3. You pay the force placed insurance premium out of the escrow account and if that leaves her escrow account short, you analyze the escrow account and follow your procedures for the customer making up the short fall, like you would do whenever an escrow account has a shortage.
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