Forced Placed Insurance

11 months ago

Insurance Glossary Team

1 minute

Plain English Definition: Forced placed insurance is coverage imposed by a lender when a borrower fails to maintain insurance on collateral property.

What Forced Placed Insurance really means for someone with an insurance policy

Lenders ensure properties securing loans are covered even if the borrower fails to maintain insurance, though premiums are often higher.

Forced Placed Insurance Real World Examples

A bank placing insurance on a mortgaged home without active coverage.
A lender insuring a financed vehicle after policy cancellation.
A credit union securing insurance on a loan-backed property.