What is force-placed home insurance?

Answered by Home Insurance, Car Insurance Expert Jackie on March 1, 2021

I know there are different types of home insurance and different coverage levels, but I've never heard of force-placed insurance. What is it?

expert avatar


Home Insurance, Car Insurance Expert

If you have a mortgage, the lender requires you to carry home insurance. If you allow your home insurance to lapse or expire without getting a new policy on your own, the mortgage company or bank will force you to buy home insurance through them. This is commonly known as force-placed insurance.

Force-placed insurance will only cover the amount that you owe to the creditor; it will not cover your personal property or liability. In addition, this type of insurance can be very expensive and make your mortgage payments increase because the cost is included in your mortgage payments. Force-placed insurance is not ideal and you should definitely avoid this type of coverage.

Home Insurance

Have an insurance question?

Our insurance agents are ready to help you, for free.

Ask your question, it’s 100% free
Thousands of customers saved on average $887/year on their car insurance with Jerry
This app is great, but the customer service is even better! Not to mention convenient! My husband and I got the lowest rate (much lower than the rates I was finding online through my own searches), quickly, and pretty much all through text message! Thank you so much for a hassle free experience👍
Gabriella R.
Find savings (100% Free)
stars4.6/5 Rating on App Store