what does Placed status mean in an insurance status?
UPDATED: Apr 24, 2017
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Asked April 24, 2017
Placed status is typically used for certain homeowners or auto insurance policies.
There are some very important facts you need to know about your insurance policy. When your policy has the tag forced placed" or "creditor placed", there is a reason for this. It is put into effect by a bank or lender. This happens when the home owner's insurance policy has lapsed or has insufficient funds. The policy down here in Florida could have also been canceled. It may have also not been picked up by a replacement policy.
There are many different reasons why a policy has failed. This allows the lender to secure his or her own interest in the property. This happens a lot when the person owes money and cannot pay it back.
This can be placed on properties in "flood zones". Some areas here in Florida do not have adequate flood insurance to cover their property. The bank or lender places this tag onto the insurance policy. It is another form of protection.
In less common cases, this can also happen to those who get a loan for a car. The owner has to have the money to cover the insurance policy. You cannot let your insurance policy lapse under your service contract. You also cannot fail to obtain the proper insurance. Once you do either of these two, the lender has the right to put a "force- placed" on your car.
This type of insurance is considered "additional coverage", It will cost a lot more. It also tends to have some limits placed on it. One of these limits happens to be liabilities for the owner.
Contact your company right away. Find out what happened. The servicer could be at fault, but you still should make payments on it. Seek to either reinstate your policy or get a new one as soon as possible.
Get as much information on your case. You will need this to back up your case. This happens a lot in cases when it is not the owner's fault.""
Answered April 25, 2017 by fl_pc