8 min read
Jan 15, 2025
How To Remove Lender Placed Insurance
Removing force placed insurance is a priority for most homeowners. Here is the process.
1. Buy a New Policy
Shop for a standard homeowners policy. If you have been denied due to claims or roof age, look for "high risk" or "FAIR plan" policies.
2. Send Proof Immediately
Do not wait. Send your new Declarations Page to your lender via their specific insurance email or fax number. Ensure the "Mortgagee Clause" on your new policy matches your lender's exact requirements.
3. Confirm Cancellation
Call your lender 48 hours after sending proof to confirm receipt. Ask when the force placed policy will be cancelled.
4. Watch for Refund
The lender should refund the unused portion of the force placed premium to your escrow account.
Frequently Asked Questions
Can I cancel it online?
Many major lenders allow you to upload proof of insurance via their online portal, which is often faster than mail.
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How to remove force placed homeowner insurance
A Simple Exit Plan That Often Works
Once you understand how you arrived at force placed coverage, the next goal is usually to replace it and restore full protection.
01
Secure New Coverage
Shop for a policy that fits your specific situation, whether through standard insurers or high-risk "excess and surplus" markets.
Ensure your new coverage restores the personal property and liability protection that force-placed policies often omit, and verify that dwelling limits are based on replacement cost rather than just your loan balance.
02
Submit Proof
To cancel the lender’s policy, you must provide a complete proof of insurance package.
This typically includes a full declarations page and the servicer's specific mortgagee clause—including your loan number—to prove your coverage meets the minimum requirements of your mortgage contract.
03
Confirm Cancellation
Once your servicer accepts the proof, they will typically cancel the force-placed policy and issue a pro-rated refund to your escrow account.
Monitor your account to ensure the refund is applied and that your monthly mortgage payment is recalculated to reflect the lower insurance costs.