Lender-Placed Insurance

When mortgagees stop paying their homeowners insurance premiums, the collateral of the bank is at risk. In this situation, the lender places a policy and charges the cost of the policy to the debt of the mortgagee. These lender-placed policies are more costly, because there is uncertainty about what might happen to the property without an occupant or with an occupant that is not paying the mortgage.

ABA's Position 

ABA supports legislative and regulatory reform that would preserve ability of banks and insurers to offer lender placed insurance on mortgages and other credit products.


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Questions? Please contact Sarah Ferman.​


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