What is force-placed insurance and why can’t I use it?

Force-Placed Insurance also called Lender-Placed Insurance is a stop-gap policy your mortgage lender purchases (and bills to you) when your own homeowner’s coverage lapses or falls short.

It’s written in the lender’s name to protect their collateral, so:

• It often omits key protections you need (liability, personal property, loss-of-use).

• It names the lender as the only loss payee, meaning claim checks go straight to them, not to you for repairs.

• It doesn’t safeguard your interest, or Point’s shared interest, so we can’t accept a force-placed policy.

We require a standard HO-3 (or equivalent) homeowner’s policy that:

• Lists you (or your trust) as the named insured, and

• Adds Point’s designated {{glossary.subservicer}} as an additional loss payee.