What Is Lender Placed Homeowners Insurance? 
Under the terms of your mortgage your lender can buy a homeowners policy to protect his interest . He will do this if you do not provide one . That cost of that policy is then included in your mortgage payments . The policy may not protect your interests but it will protect the lenders . The policy may be more expensive . Normally the lender will discontinue the policy when you buy one yourself , naming him as mortgagee . 