![]() The practice of lender-placed insurance has attracted increased media coverage in recent years. These standard provisions allow the lender to protect its financial interest in the property (its collateral) if a calamity occurs. However, if the policy lapses or is canceled and the borrower does not secure a replacement policy, most mortgages allow the lender to purchase insurance for the home and “force-place” it. Borrowers can fail to maintain the required coverage for a variety of reasons-cancellation, a withdrawal by their existing insurer, or even just a simple oversight. All mortgages require borrowers to maintain adequate homeowners insurance on their property. ![]() Lender-placed insurance, also known as “creditor-placed” or “force-placed” insurance is an insurance policy placed by a bank or mortgage servicer on a home when the homeowners’ own property insurance may have lapsed or where the bank deems the homeowners’ insurance insufficient. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |