Forced Insurance

[readynowtx]

HomEq placed insurance on my house when a lapse in coverage occurred. Normally I pay about $600 per year for full coverage - property, contents, and liability. However, they are charging me about $2800 for strictly property coverage.

I find this amount to be wildly excessive. I suspect they own the insurance company too, which would provide another income stream. Any thoughts/suggestions, on how to deal with it? Could there be a violation of some law or regulation?

And I am still waiting on the QWR. I have noticed that since they received the request, they have become much more professional on the phone.

[nitag]

Go back to your insurance agent and get your policy back into force have your agent call and fax over a copy of your declaration page along with a request to remove any forced place insurance. Once your agent takes care of that call HomEq and have them adjust your account.

[readynowtx]

Thanks Nitag, I have already done that. This lapse occurred over a year ago. I have spoken with my agent about possibly back dating a policy, but he can't.

I understand why HomEq would need insurance in place. I object to the excessive amount of premium and consider this to be predatory lending/serving.

Your agent can not back date the policy, however they can put the new policy in place and thereby reduce the present payment commensurate with the new policy costs on a monthly basis.

HomeQ and others are very abusive in this procedure on the cost of the forced placed insurance...I do believe that there is a kick back from the insurance company to them....prove it and you have grabbed the brass ring. This is a practice that HUD and FTC can investigate for you please, please make a complaint, they do listen. Ocwen is now being investigated because of consumer complaints. This takes you folks.....

[readynowtx]

Empire Indemnity Insurance Company charged a premium of $2,854.64 for a years coverage. Here's the real kicker: this "company is not licensed to transact insurance in Texas and is issued and delivered as a surplus lines coverage pursuant to the Texas insurance statues."

The policy goes on to say "The state board of insurance does not audit the finances or review the solvency of the surplus lines insurer providing coverage."

Amazing. So HomEq placed forced insurance on my house, by a company not even licensed in Texas, then charged me a ridiculous premium. I am seeing fraud, wire fraud and usury here.

Since I live in Austin, home of state government, I think a trip downtown to the attorney general's office will be on my agenda, first thing Monday morning. I don't know what legal recourse is available, but I am willing to pursue every possible option against HomEq.

Give 'em hell, I do mean that, this is out and out amazing....I am as an industry professional disgusted, and not mildly disgusted, totally. If the State Insurance commissioner confirms your suspicions, please contact HUD and FTC, they are getting really, really proactive with this crap. I do not know how strongly I can urge to you do that please, for the sake of all in this mess. They can an will shut down the naughty boys and girls...shut them down...look up the Fairbanks Capital Case in FTC....they nailed them to the wall for just this kind of crap.....