Forced insurance policies cripple Minnesota homeowners

  • Article by: JEFFREY MEITRODT , Star Tribune
  • Updated: October 8, 2012 - 8:42 AM

Lenders slap struggling homeowners with sky-high insurance rates.

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  • Comments

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jim2011beamOct. 6, 12 7:47 PM

Wake up, crybabies! The answer is - pay for your own insurance and keep your property in good shape. If you can't afford what you've got then sell and downsize. This property was where? A big mansion on Cathedral Hill? Only the wealthy buy there.

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popsantaOct. 6, 12 7:51 PM

If it is a mistake, that is one thing, but otherwise, I don't see the issue. You agree to carry insurance when you take the mortgage. If you don't, they sign you up. If you don't like it, then get insurance at the 'normal' rate.

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SubGeniusOct. 6, 12 8:07 PM

Key quote: "in 2008, unable to keep up with mounting debts, she stopped paying her property taxes and insurance." Sounds more like an avoidable case of user error.

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loriblOct. 6, 12 8:39 PM

Next the federal gov will get into this?

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marrmanOct. 6, 12 8:50 PM

Minnesota officials concede they have no idea whether those rates are reasonable. Oh come on, 1% or 2% of the balance they insure is reasonable. this is out right thief!

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dtmonkeyboyOct. 6, 12 9:32 PM

Jim2011.... Great idea...just downsize!! And how exactly does downsizeing help when your house is worth less than you owe?.....which is the case for 40% of Americans....even those that put 20 or 30% cash down.

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dtmonkeyboyOct. 6, 12 9:48 PM

A bank has a right to protect it's assets, by forcing you to pay for insurance...but is right that the insurance they force you to get makes them huge profit? Is it good for American business or the economy to have banks making loans that they hope will have problems because those are more profitable? If we allow banks to profit from bad loans, it will cripple the economy.

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lmjz69Oct. 6, 1210:19 PM

And the fleecing of the bottom 99% continues. Just love our 2 political parties, bought and paid for by the top 1%

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nopensionOct. 6, 1210:23 PM

Never ever feel sorry for an insurance company!

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rigoristOct. 6, 1210:31 PM

It appears the previous posters believe it is OK to overcharge people, as long as they are the wrong kind of people. Mostly, other people.

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