Forced Placement
Insurance that a mortgage lender purchases on a property when the homeowner fails to maintain required coverage.
Detailed Explanation
Also called lender-placed or force-placed insurance, this coverage protects the lender's interest in the property but is typically more expensive and offers less protection for the homeowner than a standard policy.
Practical Example
When Robert let his homeowners insurance lapse due to missed payments, his mortgage company implemented forced placement insurance and added the premium to his monthly mortgage payment, increasing his housing costs significantly.
Frequently Asked Questions
Related Terms
Need Insurance Coverage?
Request quotes from top insurance providers and find the best coverage for your needs.
Get Free Quotes