Force-placed homeowners (dwelling fire or flood) insurance also known as lender-placed insurance happens when your mortgage lender, bank or loan servicer obtains insurance on your home because your own policy has lapsed, been canceled, or is considered insufficient.

Lenders require homeowners to maintain continuous insurance coverage to protect their financial interest. If proof of insurance is not provided, the lender can purchase a policy and add the cost to your mortgage payment.

Why Force-Placed Insurance is bad

Force-placed insurance is typically much more expensive than a standard homeowners policy and provides limited protection.

Basically, it only covers the structure of the home, the amount of the loan and does not include important coverages such as:

• Personal property
• Liability protection
• Additional living expenses also known as Loss of Use

How to Remove Force-Placed Insurance

The good news is that force-placed insurance can be canceled once you obtain your own homeowners (dwelling fire or flood) policy and proof of coverage is provided to your lender.

If you have received a notice from your lender, it’s important to act quickly!

Need Help Getting Proper Homeowners Insurance?

If your lender has placed insurance on your home or you received a warning notice, contact the team at Curran Cooney Penny Insurance Agency. We can help you secure homeowners (dwelling fire or flood) coverage and assist with getting the lender-placed policy removed.

Getting replacement insurance after a lapse in coverage—even if you had force-placed insurance during that time—is typically more difficult than obtaining coverage when there has been no interruption in insurance.