If you’ve missed a payment on your homeowner’s insurance or let your policy lapse, you might encounter “forced placed insurance.” This policy is one your lender imposes if your coverage lapses, and while it protects the lender’s investment, it may leave your personal property uninsured and is often more expensive than regular homeowners insurance.
What Is Forced Placed Insurance?
Forced placed insurance is added by a lender when your homeowner’s policy lapses. It primarily protects the lender, not you, and typically costs more while offering limited coverage.
Forced Placed vs. Standard Homeowners Insurance
Forced placed insurance protects only the lender’s interest, leaving personal belongings uninsured. When choosing a policy, consider options like actual cash value (ACV) or replacement cost coverage on roofs. ACV covers the depreciated value of an item, while replacement cost provides the amount needed to restore it.
Why Keeping Your Mortgage Information Updated Matters
Each time your insurance renews, we update your mortgage information to prevent lapses or forced placed policies. If you’ve refinanced or changed lenders, let us know — we’re here to help keep everything current. This will help you avoid forced placed insurance.
How We Can Help If You’re Facing Forced Placed Insurance
If forced placed insurance has been added to your property, we can help you navigate the process. Our team can assist with providing proof of coverage to your lender, so they can:
- Cancel the forced placed policy within 15 days of receiving proof of your insurance.
- Refund any premiums charged for overlapping coverage.
Our agency is here to ensure your policy is up-to-date, helping you avoid unnecessary costs and maintain the coverage you need.
Improperly Placed Insurance
If forced placed insurance was added in error, we can work with you to provide documentation to correct it, so you don’t pay for duplicate coverage.
Protect Your Home with the Right Insurance Coverage
If you’re facing forced placed insurance, it’s an opportunity to explore a better policy that protects you and your home. Reach out to us for a quick home insurance quote — we’ll help you find affordable, comprehensive coverage that meets both your needs and lender requirements.
If you have questions about how your escrow payment is determined, check out our blog on escrow payments Managing Escrow: Tips for Homeowners and Homebuyers.
Take control of your coverage today by contacting us to review your policy or get a quote. Let’s work together to protect your home and avoid costly surprises with forced placed insurance.
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