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Force-Placed Homeowners Insurance: Responding to a Coverage Notice

A mortgage servicer may arrange insurance when it believes required coverage has lapsed. That can sharply change a payment, even when the borrower believes an existing policy is active. Treat the notice as a request to reconcile records: the policy dates, proof of coverage, payments to the insurer, and the charges appearing on the mortgage statement.

The questions below use selected Consumer Financial Protection Bureau guidance, adapted and organized by Fynoptic. Source links and the dates displayed by those sources are provided at the end.

What can I do if my mortgage lender or servicer is charging me for force-placed homeowner's insurance?

Make sure you have your own homeowner’s insurance and send proof to your mortgage servicer.

If you don’t have homeowner’s insurance, or don’t have enough homeowner’s insurance, or your homeowner’s insurance has lapsed, here are steps you can take:

  1. Contact your insurance carrier as soon as possible and get a new insurance policy or ask to have your old policy reinstated. If you don’t do this, you may have to pay for costly force-placed homeowner’s insurance if you’re not otherwise covered.
  2. Once you have a new or reinstated homeowner’s insurance policy in place, send proof of the policy and any other information that your mortgage servicer has requested to your mortgage servicer. Request that your mortgage servicer cancel the force-placed insurance policy it obtained for you as soon as possible.
  3. If you disagree with an action your mortgage servicer took with your insurance, you can send a notice of error, which is a letter to your mortgage servicer saying that there was an error and disputing the error.

Your servicer may require force-placed insurance when you do not have your own insurance policy or if your own policy doesn’t meet the requirements of your mortgage contract. In many instances, this insurance protects only the lender, not you. The servicer will charge you for the insurance. Force-placed insurance is usually more expensive than finding an insurance policy yourself.

If your homeowner’s insurance coverage was cancelled because your mortgage servicer failed to make timely insurance premium payments from your escrow account, then you may want to consult an attorney.

If you have a problem with your mortgage, you can submit a complaint with the CFPB online or by calling (855) 411-CFPB (2372).

What is homeowner's insurance? Why is homeowner's insurance required?

Homeowner’s insurance pays for losses and damage to your property if something unexpected happens, like a fire or burglary. When you have a mortgage, your lender wants to make sure your property is protected by insurance. That’s why lenders generally require proof that you have homeowner’s insurance.

Standard homeowner’s insurance doesn’t cover damage from earthquakes or floods, but it may be possible to add this coverage. Homeowner's insurance is also sometimes referred to as "hazard insurance".

Many homeowners pay for their homeowner’s insurance through an escrow account as part of their monthly mortgage payment. You make the payments to the lender, and the lender holds the part of the payment that is for insurance in an escrow account. Then, when the bill for the insurance is due, the lender pays it from the escrow account.

The cost of your homeowner’s insurance, as well as any similar insurance to protect the property, is listed on page one of your Loan Estimate, in the “Projected Payments” section. However, it’s usually a good idea to do your own research about how much homeowner’s insurance costs. You can shop separately for homeowner’s insurance and choose the provider and plan that is right for you.

If you don’t have insurance, your lender is allowed to buy it for you and charge you for it—but your lender must give you advance notice. If your lender buys insurance on your home because you did not keep up your homeowner’s insurance, that insurance may only cover the lender, and not you. It also may be more expensive than what you could buy on your own.

Homeowner’s insurance protects your property. Homeowner’s insurance is not the same as mortgage insurance.

Note: You will not receive a Loan Estimate or Closing Disclosure if you are shopping for:

For these kinds of loans, you should receive Truth-in-Lending disclosures. If you are shopping for a reverse mortgage, you will also receive a Good Faith Estimate (GFE) and a HUD-1 or HUD-1A Settlement Statement. Information about the cost of homeowner’s insurance can be found in Block 11 of your GFE.

Why did my monthly mortgage payment go up or change?

Several things can cause your mortgage payment to change. Check your mortgage statement for the itemized charges. If you still have questions, contact your servicer.

Common reasons for a monthly mortgage payment to change include:

  1. You have anescrow accountto pay for property taxes or homeowners insurance premiums, and your property taxes or homeowners insurance premiums changed. Check your monthly mortgage statement. If your monthly mortgage payment includes the amount you have to pay into your escrow account, then your payment will also go up or down if your taxes or premiums go up or down. Learn more about escrow accounts.
  2. You have a temporary buydown that was lowering your payment. With a temporary buydown, you get a lower mortgage payment for limited time in exchange for an up-front fee or a higher interest rate later. Temporary buydowns usually last one to three years, with payments increasing each year until the buydown ends.
  3. You have an adjustable rate mortgage (ARM)and the interest rate changed. Check the type of mortgage you have. Some homeowners believe that they have a fixed-rate mortgage loan when their loan actually includes an adjustable-rate or some other feature that can cause their interest rate and payment to change.
  4. You have an interest-only or pay-option loan and you are starting to pay principal. With these loans, you can postpone making principal payments for a while. That means that for a period of time you are only paying off the interest that’s accumulating on the amount you borrowed to pay for your home. Eventually, you have to start paying principal, or the actual amount you owe on the home, and that will make the monthly payments go up.
  5. You got private mortgage insurance with your mortgage and the amount changed. It could also be because you stopped paying for private mortgage insurance. If you have private mortgage insurance, your monthly payment may change once you are able to and opt to cancel the insurance.
  6. You were charged new fees. Your servicer may have charged you fees that increased your monthly payment. Check your monthly mortgage statement or any correspondence you recently received from your lender or servicer.
  7. It’s also possible that your mortgage servicer simply made a mistake. If you think your servicer made a mistake, first call your servicer to check. While on the phone, explain the situation to the servicer. Ask for a corrected statement. Also, ask for a reference number and the name of the person you are talking to, and take detailed notes on what you talked about and the date of the call, so you can keep track for your records. If your servicer doesn’t fix the problem over the phone, send a notice of error to your servicer explaining why you think it made a mistake in calculating your loan payment. Make sure you send the notice to the address your servicer uses for errors and information requests. This address should be listed on your statement or the servicer’s website – it might be different from the address where you send your payments.

If you still don’t understand why your payment changed, you should call your mortgage servicer, and you may also want to send an information request.

If you have a problem with your mortgage, you can submit a complaint to the CFPB online or by calling (855) 411-CFPB (2372).

How do I manage my monthly mortgage payment?

Your monthly mortgage statement has information that you can use to stay on top of your mortgage payment.

A mortgage statement usually comes on a monthly basis. Your statement contains the following information (as well as other information):

  • Customer service contact information for your mortgage servicer
  • The amount due
  • The due date
  • Your interest rate
  • Fees and charges
  • Information about any past due payment, late fees, and how much you must pay to bring the account current if you are delinquent on your loan for more than 45 days

Review your statement each time it arrives. This can help you spot problems quickly. If you don’t understand something on the statement, contact your mortgage servicer using the contact information on the statement. You can also send a written request for information.

Consider setting up automatic payments with your mortgage servicer or through your bank or credit union. This can help you stay on track.

What to do if you get a coupon book

Not everyone receives a periodic mortgage statement. Some people may receive a coupon book. Servicers usually send out coupon books in the mail once a year. Coupon books usually have payment slips (“coupons”) that you tear out and return with your payment. If you receive a coupon book, it might only include the servicer’s contact information, your account information, and the amount due. You may need to contact the servicer to request other information, for example, an explanation of amount due or past payment information.

Some servicers may not send mortgage statements or coupon books but instead may send you an email or other type of notice telling you what to pay. If you aren’t sure, contact your mortgage servicer. You can also send a written request for information.

Sources and further reading

The CFPB source passages are U.S. government work in the public domain. Fynoptic has selected, organized, and adapted the material for this guide, including corrections identified through the additional sources listed above. Sources accessed October 27, 2026. This use does not imply agency endorsement or affiliation.

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