Florida Homeowner Unable to Challenge Insurance Claim from Lender

New Port Richey Homeowner Faces Dilemma With Lender-Placed Insurance

NEW PORT RICHEY, Fla. — Rose Martin, a homeowner in New Port Richey, has reached out to Tampa Bay 28 Anchor Nadeen Yanes for assistance regarding a frustrating encounter with her lender-placed insurance after Hurricane Milton. Struggling to navigate the complexities of her forced insurance policy, Martin expressed her desperation, highlighting that her mortgage lender, Freedom Mortgage, is the policyholder, leaving her with limited rights.

After her original insurance company went out of business, Martin found herself unable to secure an affordable policy and was placed on insurance by Freedom Mortgage. She describes feeling relieved initially, believing her home was protected. However, after Hurricane Milton caused significant water damage, her claim was met with disappointment—as she received only $1,111.51 for estimated damages of $200,000, with the insurer refusing to cover the claim based on prior damages.

Legal expert David Murray criticized the nature of these policies, stating that homeowners like Martin often find themselves with a mere bill, not real insurance. He explained that statutory changes have increasingly removed homeowner rights from these contracts, which mainly benefit lenders.

Martin’s predicament is common among many Floridians struggling with such policies, which can cost significantly more than traditional coverage while offering less protection. “I’m stuck between a rock and a hard place,” she lamented, as she continues to seek resolution and hopes to raise awareness about these issues to prevent others from falling into similar traps.

While queries have been directed at Freedom Mortgage and the insurance provider, the response remains pending as the community watches closely for a resolution in Martin’s case.

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