When you take out a loan to pay for your house, the lender may require your to get hazard insurance. If a natural disaster destroys your home, your lender wants to ensure their interest is protected. If you do not renew your hazard insurance, your lender may force-place insurance into your loan payment. Force-placed insurance is expensive. No one wants this to happen to them, so make sure you do not let your hazard insurance lapse.
            Force-placed insurance will not cover what a typical homeowners insurance policies cover. Since a force-place insurance policy is designed to protect the lender's interest, this coverage may not cover your clothes, jewelry, or other household items. Force-place coverage will not cover the medical bills of a person who was injured on the borrower's property, unlike homeowners insurance.
            In order to get rid of force-placed insurance, a homeowner must obtain hazard insurance under a homeowner's insurance policy along with homeowners insurance. They must show proof of insurance to their lender. Your lender will cancel the force-placed insurance and refund any coverage costs you paid twice.
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