If you had overlapping insurance, meaning you had your own insurance policy at the same time the mortgage lender had force placed insurance a/k/a lender placed insurance on your property, the mortgage lender can obtain a refund of the premiums for the force placed insurance for the periods in which you had overlapping coverage in place. However, if there is a gap period between the time the lender obtains the force placed insurance and the time you obtain new coverage, not all of the premiums for the force placed insurance will be refunded.
From a practitioner’s point of view, if there is a lapse in coverage, the borrower should at least try to reinstate the prior policy retroactive to the initial lapse date rather then obtaining a new policy (which takes effect on the date it is obtained). If you are able to get the policy reinstated to the date the policy lapsed there is no gap period and refunds may be issued on the premiums.
