What is not considered prior insurance?

Forced place insurance is not considered prior insurance because it is a type of coverage that a lender or mortgage servicer purchases on behalf of a borrower when the borrower fails to maintain their own insurance policy. This coverage typically comes into play to protect the lender’s interests rather than the borrower’s, making it distinctly different from traditional forms of insurance that an individual proactively secures, such as homeowner's insurance, personal liability insurance, or renter's insurance.

In contrast, personal liability insurance, homeowner's insurance, and renter's insurance are all forms of coverage that individuals actively purchase to safeguard their assets and manage risks associated with their dwellings and personal belongings. These policies are generally identified as prior insurance because they are arranged before a claim or an event occurs, establishing previous coverage history relevant to risk assessment.