Force-placed insurance is an insurance policy your mortgage service picks out when your homeowners insurance policy expires. It can cost up to ten times more than a regular homeowners policy, in part because mortgage servicers are often getting kickbacks and other incentives due to self-dealing.
The Department of Housing and Urban Development has charged Erie Insurance Goup and five independent insurance agencies with violating the Fair Housing Act. According to the HUD charge, they provide inferior products–or no products–to homeowners in predominantly African-American neighborhoods.
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