# What a Landlord Can Do When a Tenant's Insurance Lapses

Source: https://www.creshield.com/resources/tenant-insurance-lapsed-force-placed
By Brad Cottam, CRE Shield (licensed in Kansas and Texas). Updated 2026-10-28.

When a tenant's required insurance lapses, most net leases let the landlord give notice, allow a short cure period, and if the tenant does not cure, **buy coverage and bill the tenant for it**, in addition to any default remedies. That landlord-purchased coverage is often called force-placed or lender-placed insurance. It can protect the landlord's interest in the short term, but it is usually narrower and more expensive than a normal policy, and it is not a substitute for the tenant keeping its own coverage.

## How lapses are usually discovered

- The renewal certificate never arrives by the expiration date.
- A certificate shows a cancellation or non-renewal.
- The tenant's agent notifies you of a change.
- Your lender or tracking system flags an expired policy.

This is why a calendar entry 30 to 60 days before each expiration is worth the time. See [how to track tenant certificates](/resources/tenant-coi-requirements-and-tracking).

## Steps to take

1. **Confirm the facts.** Ask the tenant's agent for evidence the policy is in force or the reinstatement. A missing certificate is not always a lapse.
2. **Check the lease.** Look for the required coverages, the notice period, the cure period, the landlord's right to purchase insurance, and how the cost is billed.
3. **Send written notice** the way the lease requires, citing the section and the deadline.
4. **Tell your lender** if its loan documents require notice of lapses.
5. **Decide whether to force-place** if the tenant does not cure.
6. **Bill the tenant** as the lease provides, with the invoice and backup.
7. **Keep the file:** notices, delivery proof, responses, the replacement policy and invoices.

## What force-placed coverage is, and is not

- It is coverage the **landlord buys** to protect the landlord's interest in the property after the tenant's coverage fails.
- It usually covers the **building, not the tenant's contents or operations,** and may not include liability for the tenant's business.
- It can be **costly and limited** compared to a normal policy, with higher rates, exclusions, and short terms.
- It does not release the tenant from the lease's insurance covenants, and it does not necessarily protect additional parties such as the tenant's customers.
- Availability depends on the carrier and the property.

## Practical protections

- Make sure the lease says the landlord may buy coverage and bill the tenant, with interest or an administrative fee if you want one.
- Keep your own landlord's liability policy. See [landlord liability on a net lease property](/resources/landlord-liability-net-lease-property).
- Check what your own property policy says about vacancy and unoccupancy if the tenant's operations stop. See [what happens to your insurance when a tenant leaves](/resources/vacant-building-insurance-after-tenant-leaves).
- Ask your agent whether an owner's policy that responds when the tenant's policy lapses makes sense for your portfolio.

## FAQ

### Can a landlord force a tenant to buy insurance?
The lease can require it and give the landlord remedies if the tenant does not comply. Follow the notice and cure terms in the lease.

### Is a missing certificate the same as no insurance?
No. The tenant may be covered but did not send proof. Ask for it before taking action.

### Who pays for force-placed insurance?
Usually the tenant, if the lease allows the landlord to buy it and bill the cost.

### Does force-placed insurance cover the tenant's liability?
Often not. It generally protects the landlord's interest in the property.

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*This article is general education, not insurance or legal advice. Lease terms and coverage vary. Have your lease reviewed by a qualified professional. CRE Shield is licensed in Kansas and Texas and transacts insurance only in states where it is licensed.*