NEW PORT RICHEY, Fla. — New Port Richey homeowner Rose Martin emailed Tampa Bay 28 Anchor Nadeen Yanes after she said she was left with no rights to fight her Hurricane Milton claim with the insurance company, forced by her mortgage lender.
"Hi, I am in desperate need of help regarding my lender-placed insurance," Martin wrote in the email. "I am not on the policy and therefore can't see the policy. The lawyers can't even determine if I have any rights whatsoever. So now you can see my predicament and would appreciate any help you could give me. If others are dealing with this as well, maybe your resources could help all of us."
WHAT IS FORCE-PLACED OR LENDER-PLACED INSURANCE?
According to the Florida Office of Insurance Regulation, forced-placed (or lender-placed) insurance coverage is "coverage that a mortgage lender or bank purchases for property it owns to protect its interests when the homeowner fails to purchase this coverage. This often occurs during situations of abandonment and foreclosure."
However, Rose was put onto forced-placed insurance after her then-insurance company went out of business, into liquidation. So her mortgage company, Freedom Mortgage, got insurance on her home. The insurance company is listed as Intogen National Insurance Company, also known as National General, a subsidiary of Allstate Insurance.
"I was so grateful that, oh, my God, they got it," Rose said. "It's more than what I was paying, but it's insurance. I'm safer."
That was until Hurricane Milton hit in October of 2024.
'IT'S FALSE HOPE'
During Hurricane Milton, rain began pouring into her home. So she called her mortgage company to file a claim. They sent her to a separate third-party, Proctor Loan Protector.
"They sent somebody out for about five minutes. He just snapped a few pictures and left," she said. "And then everything went straight to the gutter."
Though she says she was quoted for $200,000 worth of damages by a contractor, she received a check for $1,106 for her claim.
"Basically, they're saying this damage was already there," Rose said. "But it didn't rain in my house before Milton."
So she tried to dispute the claim, only to find out...
"I have no rights whatsoever," Rose said.
That's because in a force-placed insurance policy, the mortgage company is listed as the insured, not the homeowner. Even if the homeowner is paying for it. In Rose's claim denial, Freedom Mortgage is listed as the policyholder, and Rose is copied on all communications as the "borrower."
"You sit there, and you think about it, and you use logic, 'Okay, I've got insurance. It's logical that they'll pay for the damage.' And then when you hear not only are they not going to pay for the damage, but you have no rights," she said. "It's false hope."
She had no way to fight for the insurance policy she is paying for.
"There are law firms out there that strictly deal with problems with lender-placed insurance," Rose said. "I called them, and I was excited. I had a case. Well, if your policy is written in a certain way and your name is not on it, we can't do anything."
'IT'S NOT INSURANCE AT ALL'
Tampa Property Insurance Attorney David Murray said he's represented several lender-placed insurance cases over the last 20 years.
"Rose thinks, 'I have a policy. Rose doesn't have anything," he said. "What she has is a bill that she has been paying for at the benefit of a mortgage company and an insurance company."
Murray said that since the major insurance reform in 2022, mortgage companies and lender-placed insurance companies have essentially written the homeowner out of the insurance policy. No longer listed as a beneficiary to fight the claim.
"It's not insurance. It's not insurance at all in my book," he said. "It's a contractual agreement that was with the bank and the forced-place insurance company."
He said, in fact, your name isn't even on the policy.
"You have no rights under that policy. In the past, there were rights, but as Florida law has developed on this issue, lawyers are pretty savvy individuals. What they have discovered is that they can write these force-place insurance contracts to write out the benefits, or any benefits or rights that a homeowner may have under this policy."
He also said forced-placed insurance costs more.
"A lot more," Murray added.
According to an article from CRE Daily, which covers business and real estate, lender-placed insurance can cost up to 10x the amount of regular property insurance. Insurance industry experts say it's known as a policy that is "twice the costs, half the coverage".
"I'd imagine a lot of people would ask, how is that even fair?" Nadeen asked the attorney.
"Well, what's fair and what is a contractual agreement are two separate things, right?" he said. "I think that needs to change. Tallahassee need to say, if the homeowner is paying for an insurance policy, they should have some right."
'STUCK BETWEEN A ROCK AND A HARD PLACE'
For Rose, living in a home that is covered and tarps, she has run out of options. She tried to get in touch with someone at Freedom Mortgage to see if they would dispute the claim on her behalf, but had no luck. She said she also can't find a new insurance company to pick her up, with her home still damaged, and unable to pass a wind mitigation inspection.
"I'm stuck between a rock and a hard place," she said. "My options are looking for a new mortgage or something to cover the cost of the roof, because it's got to get fixed. It already smells musty in the house because of the wet insulation."
Which is why she wanted to use her voice and tell her story.
"When it all fell on deaf ears, I was like, 'People have to know what's going on'. And I was looking at the news channels, and nobody was talking about this. So that's why I reached out to you," Rose said.
Reminding people to get to know what is in your insurance policy, so you aren't left with little to no coverage.
"I just wanted to get out there to help other people. It may be too late for me, but like I said, if it helps one person realize that they're not covered the way they think they are, and gets them to be protected, like I said, I've done my part," she added.
THE RESPONSE
We emailed Rose's mortgage company, Freedom Mortgage, which she couldn't get in touch with. We asked if they could help fight her disputed claim. The Vice President of Marketing said they will be following up.
We also emailed the third-party company that handled the claim, Proctor Loan Services, and are still waiting to hear back.
We learned Intogen National Insurance is also known as National General Insurance, which is an AllState company. A consultant with Allstate emailed back only the following statement in response to our request:
"Lender-placed insurance is purchased and held by mortgage lenders, not homeowners. When homeowners have questions about lender-placed coverage, they should work with their lenders to learn more about the coverage in place," said Davis Roberts, Lead Consultant, Media and Issues Management.
We also sent Rose's story to the state's new Chief Financial Officer's office, which handles consumer protection and the Insurance Regulator, to see if they are aware of the limited rights homeowners have on these force-placed policies. We are still waiting to hear back.
In 2023, the U.S. Government Accountability Office did a study on lender-placed insurance; you can read more here.
'By the Grace of God, I’m still here:' Seminole man survives lightning strike outside pizza shop
Travis Kurtz says he’s lucky to be alive after collapsing outside Rizzotto’s Pizzeria — and credits the owner, his girlfriend, and a few guardian angels for saving his life.
