Reviewed and approved by Samuel Corso, licensed Texas insurance agent.

Published October 3, 2026

What is force-placed insurance in Texas?

If a charge for insurance you never bought has appeared on your mortgage statement, this guide explains what it is. It covers what force-placed insurance protects, when a mortgage company can buy it, the warning notices the CFPB describes, how to get the policy removed, and when a refund applies.

The short answer: in the Consumer Financial Protection Bureau's (CFPB) description, force-placed insurance is a policy your mortgage company buys on your home, at your expense, when you do not have your own policy or your policy doesn't meet your mortgage contract's requirements. The CFPB's guide Have a mortgage? What you can expect under federal rules puts it this way: "Force-placed insurance is usually more expensive than a policy you buy, and it generally protects only the lender, not you." The way out, per the same guide, is buying your own policy and sending proof to your servicer.

What does force-placed insurance cover?

Force-placed insurance covers the lender's interest in your home, not yours. The CFPB's Know your rights: Your mortgage servicer must comply with federal rules handout describes it as insurance your lender buys "to cover the lender's interest in your home" when you fail to keep the home insured.

The Texas Department of Insurance (TDI) describes a lender-purchased policy of this kind in its Home insurance glossary, under the name single interest insurance: if you still owe money on your mortgage and do not have homeowners insurance, the glossary says, your lender may take out a single interest insurance policy to protect its own interest in your property. The entry ends: "Single interest insurance protects only the policy owner, not the homeowner." That matches the CFPB's description of force-placed insurance.

For comparison, TDI's Home insurance guide says most home policies in Texas include six coverages, among them personal property, personal liability and additional living expenses. Because the CFPB says a force-placed policy generally protects only the lender, it may not cover your belongings, your liability or your living costs after a loss the way a homeowners policy would.

When can your mortgage company buy insurance for you?

The CFPB's page What can I do if my mortgage lender or servicer is charging me for force-placed homeowner's insurance? describes two triggers: you do not have your own insurance policy, or your own policy doesn't meet the requirements of your mortgage contract.

A lapse is one way coverage goes missing without a decision on your part. TDI's Home insurance glossary defines a lapse as the termination of a policy because a renewal premium is not paid by the end of the grace period, and defines the grace period as "The time – usually 31 days – during which a policy remains in force after the premium is due but not paid." The glossary adds that the policy lapses as of the day the premium was originally due unless it is paid before the 31 days end or the insured dies, and that this is not a free-insurance period.

Flood coverage can be a separate requirement for some Texas homes. TDI's Home insurance guide says most home policies don't cover flood damage and that if your home is in a designated flood zone, your lender requires you to have flood insurance. Our guide to flood insurance in Texas covers how that policy works.

The notices the CFPB describes before you are charged

The CFPB's Have a mortgage? guide says: "The servicer must warn you at least 45 days before it charges you for a force-placed insurance policy." According to the same guide, the notification tells you what kind of insurance you need, and you might use the time to shop for a replacement policy.

The same guide adds a second notice: the servicer has to remind you at least 30 days after sending the first notification, and at least 15 days before charging you, if you still haven't provided proof that you have the insurance you need.

The CFPB's guide also describes a rule for premiums paid through escrow. It says that where the servicer pays your insurance bill from an escrow account, it "generally must continue your existing insurance policy if possible, rather than buy force-placed insurance." If your policy was canceled because your servicer failed to make timely premium payments from escrow, the CFPB's force-placed insurance page suggests consulting an attorney. Our guide on home insurance and your mortgage explains how escrow and your premium fit together.

How do you get force-placed insurance removed?

The CFPB's answer is your own policy plus proof. Its force-placed insurance page says to contact your insurance carrier as soon as possible and get a new policy or ask to have your old policy reinstated, then send proof of the policy and any other information your servicer has requested, and "Request that your mortgage servicer cancel the force-placed insurance policy it obtained for you as soon as possible."

If a company turned you down or dropped you before, our guides on switching home insurance companies and home insurance cancellation in Texas cover that.

Do you get a refund when you prove you had coverage?

Yes, for the period your own policy was in force, in the CFPB's description. Its Have a mortgage? guide says that if you provide proof of your own insurance after you've been billed, "the servicer has to cancel its force-placed insurance. You'll receive a refund of the premiums and fees paid while your own policy was in effect."

For a charge you disagree with, the CFPB points to the notice-of-error route covered in the next section.

What the CFPB says about the lender's right and the price

The CFPB's Know your rights handout says that if you fail to keep your home insured, "your lender usually has the right" to buy force-placed insurance and charge you for it.

On price, the CFPB's Have a mortgage? guide says the servicer can't overcharge you: "It is allowed to charge you only the amount permitted by state insurance regulations or an amount that is reasonably related to the costs of providing the insurance."

If you think your servicer got it wrong, the CFPB's force-placed insurance page describes sending a notice of error, a letter to your mortgage servicer saying there was an error and disputing it, and says you can submit a complaint to the CFPB online or by calling 855-411-2372. For the insurance side in Texas, TDI's Help Line is 800-252-3439.

Key facts

• The CFPB's Have a mortgage? What you can expect under federal rules says force-placed insurance is usually more expensive than a policy you buy and generally protects only the lender, not you.
• The same CFPB guide gives the notice sequence: a warning at least 45 days before you are charged, and a reminder at least 30 days after the first notice and at least 15 days before the charge.
• It also says that with proof your own policy was in effect, the servicer has to cancel the force-placed policy and refund the premiums and fees paid for the overlapping period.
• On escrow accounts, the same guide says the servicer generally must continue your existing policy if possible rather than buy force-placed insurance.
• TDI's Home insurance glossary describes a lender-purchased single interest policy that protects only the policy owner, not the homeowner, which matches the CFPB's description of force-placed insurance; the glossary also describes a grace period of usually 31 days before an unpaid policy lapses.
• The CFPB's force-placed insurance page says the way out is a policy of your own: send proof to your servicer and request cancellation of the force-placed policy.

Sources: Consumer Financial Protection Bureau, Have a mortgage? What you can expect under federal rules (first published January 2014), Know your rights: Your mortgage servicer must comply with federal rules, What can I do if my mortgage lender or servicer is charging me for force-placed homeowner's insurance?; Texas Department of Insurance, Home insurance glossary, Home insurance guide (CB025). The CFPB pages are national guidance that applies to mortgages on Texas homes; your loan documents, your servicer and your policy wording govern your own situation. TDI's Help Line is 800-252-3439, Monday to Friday, 8 a.m. to 5 p.m. This page is general information, not legal advice. For a question about your own loan or policy, read your documents, ask your agent or servicer, or contact the agencies above.

Take the next step

A force-placed policy on your statement means the coverage protecting your own belongings and liability may not be in place right now. The sooner your own policy is bought and proven to the servicer, the sooner the CFPB's cancellation and refund steps can run.

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