Lender-Placed (Force-Placed) Insurance for Private Lenders
When a borrower's coverage lapses, your collateral can be left exposed. Lender-placed insurance, also called force-placed insurance, is coverage a lender arranges to protect its interest in a property when the borrower hasn't kept required insurance in place. KB Insurance is a boutique independent brokerage. For over a decade, we've placed property, specialty and commercial risks with creative solutions and a personal touch.
We work with private lenders, hard-money and bridge lenders, community lenders, and servicers. We help you understand the options and set up a program that fits how your loan book actually works.
What's Generally Covered
Every program is different. Final terms depend on the insurer, the policy wording, and underwriting. Options may include:
- Lender-placed hazard (property) coverage on residential, multifamily, mixed-use and commercial collateral
- Coverage that protects the lender's interest, which is commonly tied to the loan balance or property value according to the policy terms
- REO coverage for properties taken back through foreclosure, including property and premises liability options
- Flood options where a property calls for it
- Coverage for properties under renovation or vacant, subject to underwriting
- Reporting arrangements for adding and removing properties as loans change
We'll explain what each option does and doesn't do, including how coverage ends once a borrower reinstates their own policy.
Who It's For
- Private and hard-money lenders
- Bridge, DSCR and fix-and-flip lenders
- Community banks, credit unions and mortgage lenders
- Loan servicers and asset managers
- Lenders with a handful of loans as well as larger portfolios
What We Need to Quote
- Your lending profile: loan types, property types and typical loan sizes
- Approximate number of loans and where the collateral is located
- How you track borrower insurance today
- Any properties currently uninsured or lapsing
- Current REO count, if any
- Your preferred reporting method (per property or periodic)
To discuss a specific property, enter its address to start a quote or call 718-872-5525.
Why Work With a Broker
Online platforms work well for some lenders. Others want a person who knows their book, can answer a question about an unusual property, and can coordinate REO, vacant and renovation coverage in one place. As an independent broker, we compare options from multiple markets and stay with you after placement.
Start a Quote
Have a lapsed policy or a property to protect today? Start a Quote by entering the property address, or call 718-872-5525.
KB Insurance Brokerage · 5014 16th Avenue #515, Brooklyn, NY 11204
FAQs
What is lender-placed insurance?
It is coverage a lender arranges on a property securing a loan when the borrower doesn't keep the insurance the loan requires. It is designed to protect the lender's interest in the collateral.
Does lender-placed insurance protect the borrower?
Generally, it is written to protect the lender's interest, not the borrower's contents or liability. Borrowers are usually better served by keeping their own policy in force.
Can it cover commercial and multifamily properties?
Options exist for many residential, multifamily, mixed-use and commercial properties, subject to underwriting.
What happens when the borrower provides proof of coverage?
Lender-placed coverage is typically cancelled once acceptable borrower coverage is confirmed. The policy wording governs how that works.
Can the program also cover REO properties?
Many lenders pair lender-placed coverage with REO coverage for properties taken back through foreclosure. We can review both together.
Do you work with small private lenders?
Yes. We work with lenders of different sizes, including those with only a few loans.