If a borrower currently has an adequate amount of insurance in place and insurance has not expired but the building description on the borrowers policy is incorrect, is the lender allowed to force place coverage?

Welcome to Bankers' Threads, Sunshine!

By incorrect, do you mean that the policy identifies a different property location, or that it has the right location but describes the property as, for example, a barn when it's actually a single-family dwelling?

Thank you John!
By incorrect i mean it describes the property as "Non-residential" when it should read "other residential"

Then your first steps ought to be to contact the borrower, point out the difference, and tell the borrower to get it corrected with his flood insurance agent. Force-placement would not be my first choice when an apparent error is the problem.

My thoughts exactly, however if after contacting the borrower and they are unresponsive what would be the following course of action. Should we wait until the policy expires to forceplace or do we have grounds to force place based on the error?

Have you tried contacting the insurance agent and explaining the issue to them? That's what I would do.

Love Flood, Yes but borrower and insurance agent have been unresponsive.

Your only point of true leverage is your borrower, since it is he that bought to coverage, not you. So if the coverage you appear to have is insufficient because the coverage amount is too low or it will never pay because the property's described wrong, or whatever other reason, and if your borrower is as responsive as a rock, you've really got no option -- you have to start the FP wagon down the tracks.

Thank you John.

Since this is not a primary residence, I would be declaring the loan in default for failure to keep the property properly insured and start foreclosure procedures and you might see some action on the part of the borrower.