Proof Of Insurance Required To Remove Force Placed Homeowners Coverage

Proof Of Insurance Required To Remove Force Placed Homeowners Coverage

Once force placed homeowners insurance appears on a mortgage account, the next step is usually to send proof of a new homeowners insurance policy to the mortgage servicer. Servicers are strict about what constitutes acceptable proof. Even small errors or missing information often delay removal of the force placed policy and may cause extended escrow shortages or higher monthly payments.

This guide explains the documents servicers usually require, how to submit proof correctly, why certain submissions are rejected, and what homeowners can do to ensure smooth and fast removal of force placed insurance.

What Servicers Usually Need As Proof Of Insurance

Servicers generally require a complete, clear, and correct proof package. The most important document is the declarations page, also known as the dec page. The declarations page summarizes the most essential details of the policy in a way servicers can review quickly.

A complete proof package usually includes:

The full declarations page

The correct mortgagee clause

The property address

The named insureds

The policy number

The effective and expiration dates

The loan number

Missing any of these items can cause the servicer to reject the submission.

Why The Declarations Page Is The Most Important Document

The declarations page is essential because it shows the following information at a glance:

Coverage A dwelling limit

Coverage B, C, and D limits where applicable

Liability limits

Deductibles

The insurance carrier name

Servicers rely on the declarations page to verify that coverage meets their requirements and that the home is properly insured.

The Mortgagee Clause And Why It Matters

The mortgagee clause identifies the lender or servicer and confirms that they are listed correctly on the policy. If the mortgagee clause is incorrect, the servicer usually cannot accept the proof.

A correct mortgagee clause typically includes:

The full lender or servicer name

The mailing address or P.O. box

The loan number for the property

Servicers often provide a specific mortgagee clause in notice letters or on their website. Copying this exactly is critical.

Why Effective Dates Must Be Accurate

Servicers require exact effective dates to determine whether there was a lapse. If there was a lapse, the servicer may still need to backdate force placed coverage until the new policy began.

When submitting proof, homeowners should confirm:

The effective date of the new policy is correct

The expiration date aligns with a one year term or as written

There is no gap in coverage compared to the previous policy

If there is a gap, the servicer may still charge some force placed premium for the lapse period.

How To Send Proof To Your Servicer

Most servicers accept proof of insurance in several ways. Submitting through multiple channels often helps avoid delays.

Common methods include:

Email to the servicer''s insurance department

Upload through the online mortgage portal

Fax using the number on the notice letter

Mail, although this is slower

Many homeowners send proof by email and then call the servicer to confirm receipt.

How To Format A Clear Proof Submission

A well formatted submission usually prevents delays. A simple email template often works well.

Example email:

Subject: Proof of Homeowners Insurance for Loan Number [####]

Hello,

Attached is the declarations page for my homeowners insurance policy covering the property at [address]. The policy is active and includes the correct mortgagee clause and loan number. Please update your records and remove lender placed insurance.

Thank you.

Common Reasons Proof Is Rejected

Servicers often reject proof for reasons that are easy to correct once identified. Common issues include:

The mortgagee clause does not match exactly

The declarations page is missing or incomplete

The loan number is not included

The property address is listed incorrectly

The effective date has not yet started

A quote was submitted instead of an active policy

Correcting these issues and resubmitting proof usually resolves the problem quickly.

What Happens After Proof Is Accepted

Once the servicer accepts the proof:

The force placed policy is usually canceled

A pro rated refund is applied to the escrow account

The monthly mortgage payment may decrease

The servicer updates the insurance status on the loan

The refund often reduces any escrow shortage created by the force placed insurance.

How Long Removal Usually Takes

Timelines can vary, but most servicers update insurance records within:

Two to three business days for document review

Three to ten business days for cancellation of force placed coverage

One to two billing cycles for the refund to appear in escrow

Submitting accurate proof usually shortens this timeline.

How To Avoid Proof Problems In The Future

You can usually avoid proof related issues by following a few simple habits:

Renew homeowners insurance early each year

Send proof to the servicer at renewal

Confirm the servicer received and processed the proof

Check email or mail for notice letters

Update the mortgagee clause if you refinance or your loan is transferred

These steps help prevent accidental lapses and force placed coverage.

Frequently Asked Questions

Is a quote acceptable as proof of insurance

No. Servicers require a full declarations page showing active coverage.

What if the mortgagee clause is missing from my policy

You can ask your insurance company to add the correct clause and issue an updated declarations page.

How long does it take a servicer to remove force placed insurance after proof is submitted

Most removals occur within a few business days, though refunds may take longer to appear in escrow.

Will my mortgage payment go down after force placed insurance is removed

Usually yes. Refunds applied to escrow often reduce shortages and lower the monthly payment.

Why do servicers reject proof even when I have coverage

Proof is often rejected for small errors such as an incorrect mortgagee clause or missing loan number, but these issues can be corrected easily.