Does Force Placed Insurance Cover Your Roof in Case of Damage

Force placed insurance is often a necessary evil for homeowners who have fallen behind on their property taxes or insurance payments. It provides temporary coverage for your roof in case of damage.

The purpose of force placed insurance is to protect both the lender and the homeowner from further financial losses due to a damaged roof. This is typically done by the lender, who will purchase a new insurance policy to cover the property until the homeowner can get back on their feet.

Homeowners should be aware that force placed insurance policies often have higher premiums and may not offer the same level of coverage as a standard homeowners policy.

Consider reading: Does Insurance Cover Emergency Contraception

If your lender has insurance on your property, contact an insurance carrier to get a new policy or have your old policy reinstated as soon as possible. You should continue to make payments to cover the force-placed insurance.

Gather detailed proof of the new insurance and send a copy of the relevant documents to your servicer. They should cancel the force-placed insurance policy they obtained for you as soon as possible.

You can send a Qualified Written Request (QWR) if a dispute arises. A QWR is written correspondence that asks for information relating to the servicing of your loan or to dispute errors about your loan account.

If the cancellation is due to your servicer's failure to make timely disbursements out of an escrow account for the homeowners' insurance premium payments, you may want to consult an attorney.