YOU ASK:
What is the definition of Forced Place Insurance?
WE ANSWER:
Forced Place Insurance refers to insurance that has been bought by a lender such as a bank in behalf of an uninsured borrower.
The lender buys this insurance for property in case the borrower fails to buy the coverage stipulated in the loan agreement. Forced Place Insurance is to protect the lender's interest on a property that has been bought using a loan. The lender wants to ensure that in case the property is damaged, there is a source of funds by which to repair or replace it.
Forced Placed Insurance will only cover the lender's interest in your property, and will not provide protection for financial responsibility requirements (this will be provided by a separate liability insurance).
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