Situations Where Force-Placed CPI Insurance May Be Required

Situations Where Force-Placed CPI Insurance May Be Required

Life can change very quickly. When you buy a home, for example, you take out a mortgage based on certain factors like your income and credit score. Should you lose your job or experience financial difficulty of any kind, however, it can greatly impact your ability to make payments. The longer you are delayed on premium payments, the more likely it is you will end up in a situation where force-placed insurance becomes a part of your policy options. Review these points to learn more. 

CPI Insurance 

There are countless scenarios where force placed CPI insurance might arise for you. Outside of failing to maintain coverage through your payments, you might also find that a general lapse or expiration of your policy can lead to this situation. Additionally, borrowers who make mistakes or oversights may see lender-placed coverage. If you cancel your policy ahead of time or experience trouble with underwriting services, these can also cause force-placed coverage. Ways to prevent this can include: 

  • Finding appropriate coverage that covers the full-range of scenarios you might experience with your home
  • Making payments ahead of time to avoid future disruptions
  • Refinancing or reassessing your mortgage with your lender

Common Considerations

While you might be taken by surprise by some of the scenarios life throws your way, there are many ways for you to take a stand and protect your investments. Learn about insurance considerations and see how to stay safe no matter what.