FGIB:Offering Force-Placed Insurance

Force-placed insurance, or, as it is also known, “lender-placed” insurance, is typically taken out by banks or other lenders on homes where the borrower does not have sufficient or any coverage. As insurance specialists with a focus in helping to protect the banking industry, including community banks and lenders, Financial Guaranty Insurance Brokers (FGIB) can assist your organization with securing a force-placed policy to protect your financial interest.

When is Force-Placed Insurance Needed?


  • The property owner has a homeowners policy, but the lender has not received proof of coverage with the lender shown as the mortgagee.
  • The property owner does not have a homeowners policy, because he or she did not purchase coverage. Or, the homeowners policy may have been cancelled or non-renewed by the insurance company, or the homeowners policy expired because the renewal premium was not paid.
  • The lender has evidence of the homeowners insurance policy, but the amount of coverage, deductible, or type of coverage does not meet the requirements of the loan agreement.

Many force-place insurance policies are dual-interest policies, providing protection for both the homeowner and the lender. A dual-interest policy typically provides replacement cost coverage on the dwelling in the event of a fire or other covered peril. These policies generally do not cover personal items or owner liability.

FGIB represents several major insurers that can provide your firm with force-place insurance.