Force placed insurance coverage

Can we force place insurance on the value of the property rather than the balance of the loan? Our contract/mortgage states if there is excess it will be given to the mortgagor (customer) so I guess it is ok??? We would just have to give any amount over the balance of the loan to the customer?

What are other banks doing for the coverage amount of force placed insurance?

Thanks

It is up to your loan contract and State law.

Ok. Thanks