8 min read
Jan 15, 2025
High Risk Insurance Options After Force Placed Coverage
If you are on force placed insurance because you were dropped by your old carrier, you might feel stuck. But you have options.
Excess & Surplus (E&S) Lines
These are specialty insurers that take on higher risks, such as homes with older roofs or coastal exposure. They are more expensive than standard policies but usually cheaper and better than force placed coverage.
State FAIR Plans
Most states have a "Fair Access to Insurance Requirements" (FAIR) plan. This is the insurer of last resort. It provides basic fire coverage for homes that cannot get insurance elsewhere.
Steps to Take
Find a local independent broker.
Ask specifically for "high risk" or "surplus lines" quotes.
Compare these against your force placed premium.
Related Posts
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.