Introduction to force placed homeowners insurance
Most homeowners are surprised by the high cost and limited coverage of these policies. Our 20 detailed guides show you exactly how to replace force-placed insurance, lower your monthly payment, and restore your full protection.
Higher
Premiums
Limited
Coverage
Escrow
Shortages
No
Liability
Non
Renewals
High
Risk
Force placed insurance is coverage that your mortgage company buys when they do not have proof that you have your own homeowners insurance.
Homeowners usually find that:
An expert guide to help you
20 Must Know Facts about Force Placed Homeowners Insurance
The articles below cover the most important parts of force placed homeowners insurance. Click any card to read a full, detailed article on that topic.
How to remove force placed homeowner insurance
A Simple Exit Plan That Often Works
Once you understand how you arrived at force placed coverage, the next goal is usually to replace it and restore full protection.
01
Secure New Coverage
Shop for a policy that fits your specific situation, whether through standard insurers or high-risk "excess and surplus" markets.
Ensure your new coverage restores the personal property and liability protection that force-placed policies often omit, and verify that dwelling limits are based on replacement cost rather than just your loan balance.
02
Submit Proof
To cancel the lender’s policy, you must provide a complete proof of insurance package.
This typically includes a full declarations page and the servicer's specific mortgagee clause—including your loan number—to prove your coverage meets the minimum requirements of your mortgage contract.
03
Confirm Cancellation
Once your servicer accepts the proof, they will typically cancel the force-placed policy and issue a pro-rated refund to your escrow account.
Monitor your account to ensure the refund is applied and that your monthly mortgage payment is recalculated to reflect the lower insurance costs.
