Lender-placed insurance, also known as “force-placed” insurance is an insurance policy placed by a bank or mortgage servicer on a home when the homeowners’ voluntary insurance lapses or where the bank deems the homeowners’ insurance insufficient. Nearly all mortgages require borrowers to maintain adequate homeowners insurance on their property and flood insurance if the property is in a flood zone. If the borrower’s voluntary policy lapses and the borrower does not secure a replacement policy, most mortgages allow the lender to purchase insurance for the home and “force-place” it. The lender or servicer will then charge the borrower for the insurance it purchased.