What is an insurance lien?

An insurance lien is a type of legal claim made by an insurance company when a policyholder has failed to pay their premiums. It is a claim on the insured’s assets, such as a car, boat, or home, until the outstanding premiums have been paid. In Florida, an insurance lien is regulated by state contract law and the Florida Insurance Code. When an insurance company makes an insurance lien, the policyholder is notified of the lien and how to release it in order to regain ownership of their property. The insurance company must also provide written notice, usually within 15 days of the lien being placed, that the insured has the right to contest the lien in a court of law. Insurance liens are a powerful tool for insurance companies to use to recover unpaid premiums, but the policyholder still has some rights. Any paid or unpaid debt or charges must be proven in court before the insurance lien can be enforced. This means that the policyholder can challenge the insurance lien if they feel it is incorrect. In Florida, insurance liens are meant to protect insurers and policyholders alike. By providing both parties with legal recourse, potential disputes can be settled quickly and fairly.

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