Insurance · 12 CFR 1024.37Force-placed homeowners insurance: the notices and how to get it removed
If the servicer believes your hazard insurance lapsed, it can buy coverage and charge you – but only on a reasonable basis and after two written notices (12 CFR 1024.37(b), (c)). The first must be delivered or mailed at least 45 days before any charge, stating that your insurance is expiring, expired or insufficient and asking for proof. A second, reminder notice follows, and the servicer may charge only if, by the end of 15 days after that reminder, it has not received evidence that you had continuous compliant coverage (§1024.37(c)(1)). Within 15 days of receiving proof that you had compliant coverage, it must cancel the force-placed policy, refund premiums and fees for any overlap and remove those charges from your account (§1024.37(g)). Charges must be bona fide and reasonable, except those regulated as insurance by the state or authorized by the Flood Disaster Protection Act (§1024.37(h)).
What Regulation X requires
Reasonable basis
No charge unless the servicer reasonably believes required hazard insurance lapsed (§1024.37(b)).
First notice
Delivered or mailed at least 45 days before any charge, with the required statements (§1024.37(c)(1)(i), (c)(2)).
Reminder + 15 days
A second notice, and no charge if proof of continuous coverage arrives within 15 days of it (§1024.37(c)(1)(ii)–(iii)).
Cancel and refund
Within 15 days of proof: cancel, refund overlap premiums and fees, remove the charges (§1024.37(g)).
Reasonable charges
Bona fide and reasonable, except state-regulated insurance charges and flood charges under federal law (§1024.37(h)).
What a new owner should do
- Send the servicer the declarations page of your policy right after closing, and again at each renewal.
- Answer any lapse notice with proof of coverage before the 15-day window ends.
- If you were charged for a period you were covered, send proof and ask for the refund in writing.
What the TC can set at closing
- Confirm the lender has the insurance binder with the right mortgagee clause.
- A post-closing reminder to send the declarations page to any new servicer after a servicing transfer.
- A reminder before the policy's first renewal date.
Questions homeowners ask
Can my mortgage company add insurance without telling me?
No. It must mail a notice at least 45 days before charging and a reminder, and wait 15 days after the reminder for proof of coverage (12 CFR 1024.37(c)).
How do I get force-placed insurance removed?
Send proof that you had compliant coverage; within 15 days the servicer must cancel it and refund overlapping premiums and fees (§1024.37(g)).
Why did force-placed insurance appear after my loan was transferred?
A new servicer may not have your policy on file – send it the declarations page and keep proof of when you did.
Related guides
Add post-closing tasks in ClosingCode to send the insurance declarations page to the servicer and to check the first renewal.
Start free trialSource: 12 CFR 1024.37(b), (c), (g) and (h) (Regulation X, eCFR, read October 25, 2026).
General information, not legal or financial advice. ClosingCode is software; it is not a law firm, lender or brokerage. State foreclosure law adds its own steps and deadlines. This guide is not a substitute for the advice or services of an attorney.