The full explanation
Before charging you, federal law requires the servicer to send you written notices. If you show that you did have insurance, it must cancel the policy and refund what you paid for the time you had both.
An example
Jorge's homeowners insurance lapsed without his noticing. His servicer sends him a notice that it will buy insurance at his expense. Jorge renews his policy, sends proof to the servicer and asks it to cancel the force-placed insurance.
You will see it in…
- Your servicer's letters about your homeowners insurance, before any charge
- Your mortgage or escrow statement, if you are charged the premium
- Your policy's declarations page, which serves as proof of insurance
