Category Archives: Insurance
Just like anything else, shopping for a dental insurance plan takes time and careful scrutiny. How do you know whether you’re getting a good buy for your money or just getting another deal that doesn’t deliver. In this article I will be going over some of the basic benefits in an individual dental insurance plan, and then I’ll show you where you can look at some plans in detail.
Instead giving you the big sales pitch, I’ll get right to what you probably really want to know. What does it cost? Then we’ll talk about what you get for the cost. In the research I’ve done for Individual dental insurance, I’ve found the price of dental plans to vary from $79.00 per year, all the way up to $139.00 per year. This is a once a year payment, not a monthly payment.
What You Get For $79.00 Per Year
The $79.00 a year discount dental plan covers diagnostic and preventative dental procedures at an approximate savings of 30%. Here are some sample savings on common dental procedures.
- Routine checkup usual fee $40 – You pay only $27
- Full mouth x-rays usual fee $104 – You pay only $72
- Adult teeth cleaning usual fee $75 – You pay only $54
- One white filling usual fee $121 – You pay only $102
What You Get For 139.00 Per Year
- Routine checkup usual fee $40 – You pay only $0
- Full mouth x-rays usual fee $104 – You pay only $56
- Adult teeth cleaning usual fee $75 – You pay only $48
- One white filling usual fee $121 – You pay only $67
As you can see, a dental insurance plan can save you money on many common procedures as well as saving you money on crowns, root canals, dentures, tooth replacement, bridges, and tooth extractions. Depending on what you want in dentistry, a dental insurance plan may be a wise money-saving choice.
Now here’s that place I promised you earlier, where you can look at and compare an assortment of quality individual dental plans
, or click on one of the following links, to learn more about the benefits of family dental plans and or group dental insurance plans in your area.
Not being able to keep your foot off the gas can have some serious consequences in Alabama they you may not be aware of. Everybody has done it at one time or another; I don’t think there is a single person out there who has not caught themselves speeding at one time or another.
If you live anywhere in the state of Alabama and get stopped for speeding you are going to receive a speeding ticket, plain and simple. Let’s say that you were 45 mph in a 35 mph zone and got stopped by an Alabama state Trooper, you are going to receive a speeding ticket for doing 45 in a 35 zone which is 10 mph over the posted limit. A 10 mph over ticket is going to result in 2 points being assessed to your Alabama driver’s license plus a fine.
Now let’s say you were stopped for doing 71 mph in a 45 mph zone. The fine is without a doubt going to be much greater, but so are the points the officer is going to assess. A 71 in a 45 is 26 mph over the posted speed limit which will result in 5 points being assessed to your driver’s license. Understandable most people are going to be more upset about the fine amount than being worried about the points assessed to their Alabama driver’s license.
Something that most people in Alabama are not aware of is that if they accumulate a certain amount of points against their driver’s license in a 2-year period is that the Alabama Department of Public Safety is going to suspend their license to drive in Alabama for a certain period of time.
Alabama Point System
The following suspension periods are based on a 2-year point accumulation period.
• 12 to 14 points = 60 day suspension
• 15 to 17 points = 90 day suspension
• 18 to 20 points = 120 day suspension
• 21 to 23 points = 180 day suspension
• 24 or more points = 1-year suspension
There is no doubt that not being able to legal drive in Alabama if your license gets suspended can be a major burden on anyone, but the one thing that most people are not aware of is that if their license was suspended, the Alabama DPS is going to require them to file an SR22 with them for a specific period of time in order to reinstate their driver’s license.
An SR22 is basically a rider that an insurance company submits to the DPS to show proof of financial responsibility. Most people refer to this as Alabama SR22 insurance. An SR22 insurance policy in Alabama is going to cost you roughly two times more than your current insurance costs. If you were paying $50 a month for a liability only policy, you can expect your SR22 insurance rate to be roughly $150 per month. This of course is just an example; your rates may be less or more depending on your situation.
If your license has been suspended for any reason it is important that you learn as much as you can about the requirements to get your license reinstated along with the Alabama SR22 insurance requirements you will have to meet. It’s important to get multiple SR22 insurance quotes from various providers in your area to try and save as much as possible on your SR22 insurance filing.
A recent AMA study found that doctors spend 14 percent of the fees they receive from insurance companies and Medicare on the process of collecting those fees, adding more than $200 billion (about ten percent) a year to the nation’s healthcare costs [Lisa Girion, 2008]. Sadly, about 30 percent of over 5 billion claims generated annually, are rejected, and surprisingly, only 50 percent of the rejected claims are ever resubmitted [Walker et al, 2004]. Note that physicians are giving up this revenue in addition to losing revenue because of the annual cuts of allowed fees. (Since 2000, health insurance premiums increased by 73 percent compared to cumulative increases in inflation and wages of about 15 percent. Yet physician’s inflation-adjusted incomes dropped by 7 percent from 1995 to 2003 [Herzlinger, 2007]. )
Why are the costs of collecting the earned fees so high and why, adding insult to injury, do providers often skip resubmitting rejected claims?
Insurance companies would like us to think that billing costs are high because of inefficiencies, and they are quick to blame the doctors for them [Lisa Girion, 2008]: UnitedHealthcare spokesman Gregory Thompson said, “Data show there is often a significant lag time between when services are provided and physician claims are submitted. ” Another often cited reason for delays and underpayments is the time that doctors take to resubmit claims or provide additional information upon insurer’s request.
But a recent AMA’s “report card” shows a wide variance between various payers in terms of payment accuracy and timeliness, ranging from 61 to 87 percent of the time [Bergen 2008]. Such a wide variance in payment accuracy and timeliness across the payers contradicts the “physician’s inefficiency” theory. If this theory was true, then, the more efficient physicians should be losing less money on rejections than others, uniformly across all payers. Conversely, since the largest insurance companies are present in most states and are exposed to vast majority of physicians and their claim delays, the differences in underpayments and denials must be attributed first of all to the differences in payer’s business strategies and processes and not – to inefficiencies in the provider’s office.
For instance, a simple calculation following an example in [Walker et al, 2004] shows that systematic claim denial is beneficial to payers when the cost of rework outweighs the benefit of resubmitting the claim. Let us assume $130 for initial charge, $55 – allowed amount, $29 – service cost, $6 – claim preparation and mail, and $25 – claim rework cost. If the claim is paid in full after contractual adjustment ($75), practice total costs would add to $35 and income – $20. But if the payer denies a part of the claim, say, $30, then the provider has a choice between leaving it alone and losing $10 on the entire incident or reworking it and then taking a chance of losing even more – $35, in case of a repeat denial, or losing $5 if the payer chooses to pay the previously denied part of the claim.
In other words, depending on the claim rework costs, denial amount, and repeat denial odds or claim rework efficacy, it may be in the provider’s best interest to minimize losses by abandoning the denied claim instead of working the denial. Therefore, a rational payer will deny a higher number of claims, counting on the good business sense of the rational provider who will only rework a small subset of the denied claims, specifically those claims that can be justified with a quick cost-benefit calculation such as the aforementioned example. Such rational payer’s behavior explains the AMA findings much better than any inefficiency on the provider’s side.
To justify rework of every denial and to eliminate a financial incentive for payers to deny claims, providers need systems with low claim rework costs and high rework efficacy. To “educate and empower physicians so they are no longer at the mercy of a chaotic payment system that takes countless hours away from patient care, ” (William Dolan, MD, member of AMA board [Japsen, 2008]) requires a leveled playing field for both providers and payers. And leveling the playing field with the payers requires equal footing in terms of strategies, processes, and resources [Lirov, 2007].
1. Bergen, Jane M. von, AMA issues report card on health insurers, Philadelphia Inquirer, June 16, 2008
2. Girion, Lisa, “Failings by insurers and Medicare add more than $200 billion a year to the nation’s healthcare tab, report says, ” Los Angeles Times, June 17, 2008.
3. Herzlinger, Regina, “Who Killed Health Care? America’s $2 Trillion Medical Problem – and the Consumer-Driven Cure, ” McGraw Hill, 2007.
4. Japsen, Bruce, “AMA to rate business practices of health plans, ” Chicago Tribune, June 16, 2008
5. Lirov, Yuval, Practicing Profitability – Billing Network Effect for Revenue Cycle Control in Healthcare Clinics and Chiropractic Offices, Affinity Billing, New Jersey, 2007.
6. Walker, Deborah, Larch, Sara, and Woodcock, Elizabeth, The Physician Billing Process – Avoiding Potholes on the Road of Getting Paid, MGMA, 2004
Know of medical billing service providers or practice software vendors who complain about escalating competition, disloyal clients, or shrinking profit margins? Help them learn winning Internet strategies for modern practice management challenges by steering them to Vericle – All-in-One Billing and Practice Management Network, home of Practicing Profitability – Billing Network Effect for Revenue Cycle Control in Healthcare Clinics and Chiropractic Offices: Collections, Audit Risk, SOAP Notes, Scheduling, Care Plans, and Coding” book by Yuval Lirov, PhD and inventor of patents in artificial intelligence and computer security.
Scam and fraud tactics employed by unscrupulous companies in the health care industry seem to be on the rise, partly because of the rise in medical costs.
Although I believe the majority of companies offering discount health and dental plans are honest and legitimate, more and more of them are out to rip off the uneducated consumer with their money making scams. And these are the ones you have to look out for.
(If I sound a bit harsh, it’s because I don’t have any respect for a person or company whose sole purpose is to take advantage of another person, period. And I want to make sure you know the tactics they use to bilk hundreds of people out of their hard-earned money.
To lessen your chances of becoming the victim of a discount health plan or dental plan scam artist, here are some things you should look out for.
(But first, a quick definition of “discount plans”)
Discount plans work by memberships. You apply for membership with a company that offers the plan and agree to pay a monthly fee. In return, your health care provider offers deep discounts on health dental services.
When you visit your doctor or dentist, you simply present your discount card for an instant discount. Since discount plans are not the same as insurance, you are responsible for paying for all services, but you’re able to get health care at savings up to 50% or more, depending on the plan you choose.
Now back to some of the ripoff tactics scam artists use. I have investigated more than 30 companies offering discount health and dental plans and here are just a few of the schemes I’ve noted.
The “Confirm Your Information” Approach
Be wary of companies who say they want to “confirm” your credit card or checking account information, as if they already have the information. Don’t fall for this one. With your financial information in hand, they’re now free to make unauthorized charges to your account. But if they already have your information, there’s no need to “confirm” anything. Just hang up on them. . . and keep on pushing.
Ghosts in the Closet?
Legitimate companies have legitimate discount plans that include medical, dental, prescription, chiropractic and other health related services. But beware of a company that inflates your savings, hides “administrative” costs and inflates the number of providers (doctors, dentists) in its network. With this company you’re probably not getting all you bargained for.
They Won’t Put it in Writing?
Before you sign on the dotted line for a discount plan, get the details in writing. Make sure you know exactly how much you’re paying for your discount “privilege. ” Steer clear of companies that are not willing to give a list of providers with addresses and phone numbers. If for any reason you ‘re not able to drag this information out of them, it’s probably a fraud, so. . . keep on pushing.
But It’s Not “Insurance?”
Be suspicious if a discount plan company rep attempts to mislead you into believing the discount plan is insurance.
Here’s a dead giveaway. . .
They try to confuse you with insurance-related terms like premiums, coverage, and benefits. Signing up for a legitimate plan is one of the smartest moves you can make, but you have to remember that discount plans are not insurance.
This one could be one of those insurance scams recently reported in the news. And if the company doesn’t make this crystal clear at the beginning, then. . . by now you know what to do.
True Discount or Just a “Plan”?
This one’s a given. If the monthly fee you’re paying for the plan exceeds the discount you receive, don’t sign up for that class. It could be another internet scam.
Don’t pay more than $39 a month for a combination medical/dental discount plan that includes the entire household. And don’t pay more than $20 a month for a dental plan that includes vision, pharmacy and chiropractic.
Absent From the Web?. . . Not Good
Legitimate discount plans have a web site with information about the company, the plan’s benefits and a list of providers. If the company doesn’t have a website don’t sign up for that class! Check out another company.
Here’s why. . .
Because any legitimate company selling health plans has no real excuse for not having a web site. And you should also be suspicious if an ad you’re reading doesn’t include a web address. The first thing that should pop into your mind is. . .
“Is it a scam”?
Mike Griffith is a freelance writer of 22 years from Dallas, TX. He’s also an independent distributor for a major discount plan company. He has researched and investigated more than 30 companies selling discount health and dental plans and has written his findings in more than 40 articles on his website, including how to avoid being scammed by an unscrupulous company. For more information about discount dental and health plans, including his recommendations for a good plan, visit him at http://www.ourdiscountdentalplan.com
Any business that provides medical care for patients will most certainly face the process of medical billing. This is a process of not only submitting claims to insurance companies for payment, but also following up on those claims. It is an important procedure for any medical office and can become tedious.
Today, a medical office can receive help with medical billing from respectable sources. Billing patients is not as simple as it used to be. Now there are massive amounts of insurance information that every medical personnel must be aware of and regulations that every medical office and physician must follow. It can be a complex procedure that, if not handled in an organized manner, can cause problems for a medical office.
Companies found online have trained personnel that will assist with every aspect of medical billing. The number one goal of those who handle the process of billing is to make things easier for the medical professionals. A medical professional is supposed to focus on the patient. That is the job that he or she has been trained for; they should not be inundated with billing concerns.
The best companies to handle your medical billing will use state-of-the art technology to get the process moving. They will have a staff that will improve the billing flow of medical offices by working to satisfy all claims and by working to increase an office’s profitability. They will have procedures in place to process claims quickly and strive to lower IT costs and increase the workflow of the office. Through it all, they will be experts in the business. When a medical office is working with an expert, there is no need to worry.
GR Medical Management, Inc. (GRMed.com) is an expert in all areas of medical billing. Medical professionals can rely on this company to make the process of billing and follow-up easier.
GRMed is an experienced and trusted medical billing service provider. For more information about their history and their services, visit GRMed.com.
The mortgage crisis will only get worse before it gets better but during these days but as crazy as it sounds there are some investors are actually trying to buy houses at these depressed levelstrying to time a bottom. There are many other factors to look at when buying a house and one that is overlooked more times than not is making sure you have protection against a faulty house title or a home title that has other problems connected with it. One of the best ways to make sure your house title is protected against all of these potential legal hazards is to purchase title insurance.
I will give you some examples so that you can fully comprehend the urgency to have title insurance that is purchased from a good company. Lets say a deed or title is passed down and sold and resold many times and the original title may have been signed by a person that is under age. A good Title insurance coverage will most likely protect you there. It can also protect you if you purchase a home and the title turns out to be a forgery or fake signature. Lets say that the house you purchased may have a mortgage on it that was done secured by someone other then the seller of the property to you. It can also protect you against a deed in which the other partner did not agree to the sale of the home. Lets say you purchased a deed but the deed wasn’t indexed properly that it wasn’t located in the land records. I’m sure that a lot of home titles are clean but you could never be to sure and title insurance provides the kind of protection on the title of you home that allows you to sleep well at night.
The first thing you need to know about title insurance before shopping for it is that there are 2 types of title insurance. One is called the Loan Policy and that policy is made to protect the lender and then there is the Owners policy of title insurance. This policy was created to protect your interests (the buyer). Now when shopping for title insurance rates its best that you properly understand the law of each state in how the company can set these rates. In some states the rates are set by the State Department of Insurance and examples of such states include Florida and texas. States like these are required by this entity to charge the same price for title insurance. just make sure you check what law your state falls under.
the most important part of choosing a title insurance company is to do your due deligence because in the end it is your money that is being spent. Research these companies online, ask your bank or banks attorneys which they see as reliable. In the end many people decide that its too much research to do and they end up going with the title insurance company recommended by their bank even though the individual by law can choose a title insurance company on his or her own. Just don’t get caught with a bad title insurance company or policy that doesn’t properly protect you against the many unforeseen problems that could happen later with your House’s Title.
Author loves to write about many different subjects such as Title Insurance and how to get affordable home insurance quotes
Years ago I saw an article, “When is 7% equal to 9%?’ It illustrated that the yield on a 7% annuity was equal to 9% when the savings on social security tax was factored in. This is a powerful feature of tax deferred annuities. If you offer annuities as a financial professional, to see how you can enhance the benefit of annuities, let’s take the following example of Mr. and Mrs. Smith:
- Recipients of $20,000 annually of social security benefits
- $200,000 in the bank, interest reinvested
- Assume fixed rate is 5% on annuity, bank CD and municipal bond for purposes of illustration
- Desire is to save taxes
Take a look at the table below and then we show you how annuities save taxes.
Scenario #1 – Scenario #2 – Scenario #3 Interest * – $10,000 – $10,000 – $10,000
Pensions – $25,000 – $25,000 – $25,000
Social Security Income – $20,000 – $20,000 – $20,000
Total Income – $55,000 – $55,000 – $55,000
Social Security Subject to tax – $6850 – $1500 – $6850
Adjusted Gross Income – $41,850 – $26,500 – $31,850
Total Federal Tax – $3181 – $1063 – $1681
*Below are three choices under consideration:
Column 1: leave the money in the bank
Column 2: purchase a fixed annuity
Column 3: move the bank money to a tax free bond
Source: hypothetical example of a married couple, both age 65, each with $10,000 social security income and with adjusted gross income of $55,000 using the standard deduction Tax computations by TurboTax™ Intuit Corporation
The purchase of the annuity results in the least tax. How can that be that an annuity, which is tax-deferred, can beat a municipal bond, which is tax-free?
It’s because in the calculation of tax on social security income, IRS includes municipal bond interest in the total income to determine how much social security income gets taxed. Note that the bond interest is not taxed, only its income is included for the “side calculation” to determine how much social security benefit gets taxed. Here’s the basic rule: Social security benefits are tax free for singles with modified adjusted gross income (MAGI) less than $25,000 and couples with MAGI less than $32,000.
What’s MAGI? It’s the usual adjusted gross income plus some “add-backs” like municipal bond interest or interest excluded from savings bonds. From $25,000 to $34,000 for singles and $32,000 to $44,000 for couples, the tax is on as much as 50% of social security income. And for higher amounts of MAGI, the tax can be on as much as 85% of social security income. Therefore, anything that can be used to reduce MAGI, can reduce tax on social security income. In our example, the annuity purchase saves $2000 annually in tax. On a $200,000 annuity, that’s worth 1% and boosts our 5% hypothetical annuity to 6%. But won’t this extra interest all get paid back later? No. Even if our couple distributes the entire annuity many years later and assuming they report interest income of $300,000 in one year, the maximum social security income subject to tax is 85% for that one year. There’s a “cap” on how much social security income gets taxed. Therefore, the annual tax savings from owning the annuity is essentially permanent and does not get paid back later.
Annuity agents who show this to their prospects can have new clients and many annuity leads
Javelin Marketing assists insurance agents, financial advisors, and investment professionals to rapidly meet clients and grow their business. http://www.javelinmarketing.com A separate site describes the annuity lead and investment lead service.
Whether you are buying a home, selling a home, retiring or relocating homeowner’s insurance can be a tricky issue. Learning the basics of homeowners insurance is key to completing a smooth real estate transaction. Below are some important tips that can help you secure a homeowner’s insurance policy. Knowledge, time management and professional advice will help you avoid common insurance problems.
The first and most important tip when purchasing a property is to always begin your search for an insurance policy as soon as you have made your first offer on a property. Homeowner’s insurance is required to secure a mortgage, if you are unable to obtain a policy before closing your real estate purchase will not go through. Lack of homeowner’s insurance can be a deal breaker, so give yourself as much time as possible.
Don’t forget to shop around. Investigate all of your options and ask your real estate agent for their opinion and advice. It may take time, but it’s worth it when you find the most coverage for the best price available.
Be sure to review a CLUE (Comprehensive Loss Underwriting Exchange) report on yourself and the property you want to purchase. Insurance companies report their losses to both of these national databases. During the underwriting process the insurance company will investigate any past claims filed and reported to the databases. If the database reports show a number of claims filed in the past the insurance company can deem the buyer or the property “high risk” and your application for homeowners insurance will be denied. Reviewing your CLUE report is like reviewing your credit report. Once you identify potential problems consult a real estate professional on how to handle the situation.
If you are calling to inquire about a possible homeowner’s insurance claim state plainly and clearly that you are calling to make an inquiry and not to file a claim. Even zero-dollar claims (claims that do not result in payment) can count against you or the property in the CLUE databases.
Always read you homeowner’s insurance policy carefully so you understand exactly what the coverage includes. Even the most common “all risks” policy, covers all causes of loss except those specifically excluded. Find out what causes are excluded and then purchase supplemental insurance, such as flood or wind insurance, if necessary.
When you choose an insurance company read the underwriting guidelines. These guidelines explain exactly what the insurance company is reviewing. This allows time for you to make any necessary repairs. A good insurance agent will then complete the field underwriting process by visiting and documenting the current state of the property.
According to the Virginia Association of Realtors, in the state of Virginia the insurance company can cancel your homeowner’s insurance policy any time during the first ninety days after closing, as long as they provide 30 days notice. This often happens because the home inspector has come across a potential problem the insurance agent did not document. In this scenario you must make timely repairs to bring your property into compliance with the underwriting guidelines to avoid cancellation. The insurance agent will again visit the property to document them.
It is recommended that homeowners avoid filing claims less than four thousand dollars. Three claims against you homeowner’s insurance can lead to cancellation, regardless of the severity or cost of the claim. Smaller repairs are best paid from your own pocket. You can also purchase a homeowner’s warranty. I often give home warranties as closing gifts to first time homebuyers, single homeowners and people buying a home over 7 years old. Warranties are renewed yearly. They cover a variety of items such as roofs, appliances, electrical, heating and air conditioning, plumbing, wells and septic depending on the type of warranty you have. These warranties are also a really great option for landlords.
Keeping these tips in mind when buying, selling, retiring or relocating will help your closing go smoothly and easily. To learn more about a variety of real estate topics please visit www.voncannonrealestate.com and read more educational articles available on my homepage.
Elaine VonCannon is a REALTOR with RE/Max Capital in Williamsburg, Virginia, and she manages investment property. Elaine is also an Accredited Buyer’s Representative as well as a Senior Real Estate Specialist. She has helped numerous clients invest in and make money on property in Southeastern Virginia. For more information about Virginia real estate or to read more of my educational articles please visit http://www.VoncannonRealEstate.com
Do you need to get a UB04 form completed for an insurance company? What is a UB04 form? Where do you find one? And how do you fill it out? We run across these questions often in the world of medical billing. Most medical health insurance claims are filed on CMS 1500 forms (sometimes called HCFA forms). These are more common to most people. Many billers don’t know when to use the CMS forms and when to use the UB 04 forms.
The UB04 claim form is used by facilities rather than physicians for their health insurance billing. Hospitals, rehabilitation centers, ambulatory surgery centers, clinics, etc need to bill their services on the UB04 form in order to get paid. Physician billing is done on the CMS 1500 claim forms.
Every once in awhile we get a call from a person who is trying to get an insurance claim paid and they are told by the insurance company that they must file the claim on a UB04 claim form. These people don’t have a clue what this form is or how to complete it. They may have had to admit a loved one into a drug and alcohol rehab facility and now find that the facility doesn’t participate with their insurance plan. These facilities often don’t file UB04 forms and can not help the family get reimbursed by the insurance company.
Many times the family has paid up front for the services of the facility and are now trying to get the insurance company to reimburse them. The insurance policy may pay out of network but the claim must be filed correctly on a UB04 form
. Often times people are trying to collect many thousands of dollars on the claim. Required fields on the UBO4 form include rev codes, value codes and type of bill. What do you put in these fields? These forms can be very confusing. Where do you get the correct information to complete the forms? And which fields are required on the form? If the facility does not have a UB04 form to fill out, where do you get one?
Unfortunately the answers are not easy. The Rev codes represent the procedure codes. The type of bill is a three digit number that represents the type of facility, the bill classification and the frequency of the bill. The value codes are required fields only in certain situations. It is very difficult to complete these forms correctly without previous experience or proper training. Another catch is that the forms were changed in May 2007 to allow for use of the NPI number. You must understand NPI numbers completely to determine where you should be entering an individual NPI number or a group NPI number. And when you try to find UB04 forms for sale, you find they are available in boxes of 2500.
If you find yourself needing to file a claim on a UB04 form and don’t know what you are doing, make sure you look into it fully. Claims are often denied time after time for information being incomplete or incorrect. If your claim is for a lot of money, you may not want to wait months for payment.
Copyright November 2008 – Alice Scott
Alice Scott and Michele Redmond own and operate a Medical Billing Service. They offer information on completing UB04 forms and getting rehab claims paid on their website. They’ve written several books on medical billing and starting a medical billing business. They also offer a forum where you can find the answer to many billing questions or leave your own question.
Forced place insurance refers to insurance taken out by a bank or creditor on uninsured debtor’s behalf on a property placed as collateral. In case the property is damaged, funding is available to repair it. This type of insurance is most common with flood insurance; the flood insurance regulations of each agency provide notification procedures that should be followed. Forced place insurance can also be purchased for other hazards also.
Insurance cover for fire handling for vacant and foreclosed properties is very expensive and can create servicing burden. Loans made on properties located in federally designated flood zones too prove to be expensive and cause difficulty to bank’s loan servicing department. The federal flood tracking regulations for these types of loans are now imposed on the lender, thus increasing the mortgage premium considerably.
Solution Offered by FSIA, Inc. The firm offers a Forced Placed Property/Liability/Flood program that claims to provide maximum protection with the least hassles. The program has some outstanding features that include:
Forced place insurance is essential for a bank or lender on an uninsured debtor’s behalf, to ensure that funding is available in the event of damage to the property. Ensure that the legal requirements are complied with to avoid litigation later.
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