So, I have kind of a bad situation on my hands. Have a loan that originated in 2015 that required flood insurance. When the policy was initially quoted/written, it was done so with the proper amount of coverage. However, after review, the provider realized that this was not for a primary residence; which changes the terms/underwriting. The provider sent a letter to the customer advising them that, in order to keep the original coverage amount, they would have to pay an additional $225. If not, then they would automatically decrease the coverage to match the premium that was paid. Apparently someone at our bank also received the letter and indexed it, but nobody in our loan department was notified (supposedly). Nothing was done. Therefore, the borrowers have had insufficient coverage for the last year. This was before I came along. I caught this because their policy was up for renewal, and I noticed the rewewal coverage amount was not enough. I notified the loan officer and the borrower. After speaking with the borrower, they called the provider and increased the coverage. We have since received a "change summary" from the provider showing that the coverage is increasing. However, it does not take effect until October 1st.

In regards to force placing; they have 45 days to get the appropriate coverage, correct? Well, their policy effective date is 8/12; which means that they have until 9/27/16 to obtain the coverage. Since the correct coverage will not take effect until AFTER the 45 day period, will we still need to force place even though we have evidence of sufficient coverage?

Personally, I wouldn't sweat 4 days. You've already had the incorrect amount for over a year. You've caught it, notified and the new/proper insurance is in the works.