Force-placed insurance
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Definition
Force-placed insurance is insurance the servicer buys when the borrower does not have a required policy, or the existing policy does not meet the servicer’s requirements. It usually protects the lender, not the homeowner, and is not ordinary homeowners insurance.
In plain English
Most mortgages require the home to stay insured. If that coverage lapses or is too thin for the loan, the servicer may buy a policy and charge the borrower. That policy is force-placed insurance. It is usually more expensive and usually covers the lender’s interest. Homeowners insurance is the borrower’s own policy.
Technical definition
CFPB’s key-terms heading defines force-placed insurance and states that it usually protects only the lender and is usually more expensive than a policy the borrower finds. That official heading is PRIMARY.
Why it matters
A force-placed charge on a mortgage statement is not proof that the borrower has homeowner coverage.
Commonly confused with
Related terms
Related mortgage FAQ
Related mortgage FAQ: What can I do if my servicer is charging me for force-placed insurance?
Sources reviewed
12 CFR 1024.17
Source reviewedSeptember 6, 2026
Mortgage key terms
Source reviewedSeptember 4, 2026
Important note
This page does not publish servicer notice calendars or premium amounts.
Cite as
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