Force-Placed Insurance
Insurance Glossary
A property policy a mortgage servicer buys on a borrower's behalf when the required homeowners coverage lapses or proof of it is not supplied, with the cost charged to the borrower. It protects the lender's interest in the building only, so it does not cover the owner's belongings, liability or living expenses, and it generally costs more than a policy the owner would buy directly. Federal mortgage servicing rules require advance notices before it is charged and prompt cancellation and refund once acceptable coverage is shown.
This content is for general informational purposes only and is not insurance, legal, or financial advice. Coverage, exclusions, eligibility, and pricing vary by insurer, by policy, and by state, and only the policy documents control what is covered. Always confirm the details of any coverage with a licensed insurance agent or the issuing carrier before you buy.
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