Force-placed insurance: what it is and how to avoid it
Force-placed insurance is hazard coverage your mortgage servicer buys when it has no proof you are insured. Under federal rules, the servicer must mail a first notice at least 45 days before charging you, and a reminder at least 15 days before. It must cancel and refund overlapping charges within 15 days of receiving proof of coverage.
Send proof of your new policy to your servicer as soon as you bind it. The notice letters will ask for it in writing and give a phone number.
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- Find your servicer name and phone on your mortgage statement.
- Tell them your policy is being replaced and when.
- Send the new declarations page the day the policy is bound.
- If you were charged for overlapping coverage, ask for the refund in writing.
What the federal rule requires
12 CFR 1024.37 sets these steps before a servicer can charge you for force-placed insurance:
- A written notice mailed or delivered at least 45 days before any charge.
- A second and final reminder mailed at least 30 days after the first notice and at least 15 days before any charge. It must state the cost as an annual premium, or a reasonable estimate.
- Both notices must say force-placed coverage may cost significantly more and may not provide as much coverage as a policy you buy.
- Within 15 days of receiving proof you had continuous coverage, the servicer must cancel the force-placed policy and refund charges for any overlap.
Why to avoid it
The rule itself requires servicers to warn you that this coverage may cost significantly more and cover less. It typically protects the lender's interest in the home, not your belongings or liability. Replacing your own policy before it lapses is almost always the better path.
Next steps
Start with what to do after a nonrenewal notice, and compare any new price with the premium increase calculator.
Related guides
Editorial standards: written from state insurance department rules and statutes, cited on each page
Last updated November 3, 2026 · Rules change often; we update state pages monthly.
FAQ
What is force-placed insurance?
It is hazard insurance a mortgage servicer buys on your home when it has no evidence you have the coverage your loan requires. The cost is charged to you.
How do I get force-placed insurance removed?
Send your servicer proof of a policy that meets your loan requirements. Under 12 CFR 1024.37, it must cancel the force-placed coverage and refund overlapping charges within 15 days of receiving that proof.
How much notice does a lender have to give before force-placing insurance?
A first notice at least 45 days before charging you, and a reminder at least 15 days before charging you, under federal Regulation X.