Force Place / Lender Place Insurance

LPI is insurance coverage provided mortgage servicers to protect both the lender and homeowner in the event of lapse in insurance protection. 


This insurance is placed on behalf of the lender when it has been determined that required insurance coverage on a property has canceled or expired.
 
This type of insurance is typically more expensive than insurance the mortgagor would choose. 


Only the structure (not contents) is covered by this policy. 


The amount of LPI coverage is determined by the last known amount obtained by the homeowner for the dwelling coverage.


The effective date of the policy is the date that the mortgagor's insurance policy expired or cancelled. 


If the mortgagor provides proof of coverage during the letter notification cycle and there is no lapse, there will be no charge for LPI policy. 


If the mortgagor provides proof of coverage after the LPI policy has been paid and there is no lapse in coverage, any premium paid will be refunded. 


If there has been a lapse in coverage during the binder or policy period, any refund due will be prorated.


Hazard LPI Cycle

Loan Type

1st Letter

2nd Letter

Policy

Escrow and Non-Escrow

60 days cycle

0 days after expiration or cancellation of policy

30 days after the 1st letter

30 days after the 2nd letter


Flood LPI Cycle

Loan Type

1st Letter

2nd Letter

Policy

Escrow and Non-Escrow

60 days cycle

0 days after expiration or cancellation of policy

30 days after the 1st letter

30 days after the 2nd letter