Arizona Joins $15.5 Million Settlement with Company that Wrongly Charged Homeowners

Phoenix, AZ – Arizona joined 48 states to reach a $15.5 million settlement with one of the nation’s largest mortgage servicers for improperly imposing “force-placed” insurance costs on borrowers who already had active homeowners insurance policies.

Force-placed insurance is often required when a homeowner’s policy is cancelled, delinquent or is insufficient in coverage and the borrower has failed to secure replacement coverage. If necessary, the lender, bank, or loan servicer may force the replacement coverage, which allows the lender to protect its financial interest in the property. This practice usually is significantly more costly than if a consumer secures their own insurance policy.

Read the entire press release. Arizona Department of Insurance & Financial Institutions, August 24, 2026