When force placed insurance is obtained for a single-family home borrower is the amount of coverage typically the replacement value of the structure or the remaining balance of the debt? If it is the higher amount does the borrower receive any settlement amount in excess of the loan amount?
Forced placed policies can differ from policy to policy. They are meant to cover the lender. The premium is based on the loan amount and it is the lender who is protected under the policy. Your interests are second.
This question is best asked of your lender, but you are better off securing your own policy with your interests first. Your bank would still be shown as lienholder, but you can protect either the value or replacement value. Both of these likely exceed the loan amount plus you'll have more coverage and the contents covered. It is possible that right now, only the bank could make a claim which means you have little coverage as compared to a normal policy you would obtain yourself.
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Forced placed policies can differ from policy to policy. They are meant to cover the lender. The premium is based on the loan amount and it is the lender who is protected under the policy. Your interests are second. 