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I'm looking for a market for a private party lender who wants to place forced coverage on a house where the owner has quit paying for the insurance per their contract. All markets I know only want institutional lenders, not private parties. Anybody know of a market? Thanks.

Could you write it as a Lessors Risk, Dwelling rented to others?

That's not the proper coverage. It's not an LRO. The occupant is the owner of the property, not a tenant. The party who wants the insurance is the lender (because the owner has quit paying). Thanks anyway.

If there is still a policy, why can't the lender pay the premium. If he is listed as the loss payee, his interest is still protected. If the policy is cancelled, he might be able to make a deal with the owner to let him pay the premium. Otherwise should he not be able to foreclose on the house?

I think Scottsdale Insurance co will write a dwelling fire policy. It's been awhile but I had one of these a few years ago. They may classify it as vacant or tenant occupied even though the homeowner still lives there. It shouldn't matter how it's classified as long as you have DP3 coverage.

Could be the 1st sign of the mortgage not to get paid...look out...

Thanks for all your responses. I've found two sources, both representing Lloyd's, who will do it properly. Seattle Special Risk and Russell Bond.

You may want to try an Excess/Surplus Lines Broker that has access to Lloyd's. Lexington (Lloyd's) should be able to do this for you, but it will be pricey. Good Luck!