Force-placed insurance (or Lender-Placed Insurance) is a policy purchased by your mortgage lender when they detect a lapse in your coverage. This is a trap that the Insurance Cop wants you to avoid at all costs. These policies are often 2x to 3x more expensive than standard insurance and only protect the bank’s interest in the structure. They typically do not cover your furniture, clothes, or personal liability, meaning you are paying more for significantly less protection.
Force-Placed
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