Put your Risk in our hands
Purpose of the Program
Lending institutions need a simple, convenient tool to effect hazard insurance on mortgaged properties when the borrower’s insurance has lapsed or on foreclosed properties once title passes to the lender. Our program provides the lender with binding authority up to the policy limit on properties where the primary (mortgagor’s) coverage is no longer in force and on foreclosed properties acquired by the lender.
Residential buildings are protected against all risks of loss except those specifically excluded. Commercial buildings are protected against named perils, vandalism and malicious mischief on the standard commercial property form. Liability coverage on both types of property is available also. Coverage is available for farms, mobile homes, and commercial contents.
Losses are adjusted on a replacement cost (or reported value) basis with no deduction for depreciation. Mobile home losses are adjusted on an actual cash value basis which includes a deduction for depreciation.
No Co-Insurance Requirement
Unlike some programs, there is no co-insurance requirement to our program. Properties can be insured for replacement cost or mortgage balance.
Coverage is written on an annual basis with a pro-rata premium return for mid-term cancellation.
Residential and Commercial Liability Available
Premises liability coverage up to a $1,000,000 limit is available for both residential and commercial properties.
Force Placed Flood
The program is designed to 1) assist the lender in complying with federal regulations requiring flood insurance on new, increased, extended, or renewal loans secured by a building or mobile home located in a special flood hazard area (SFHA), and 2) protect the lender’s interest in such properties against the flood peril.
A master policy is issued to the lender, providing the lender with instant binding authority once aware that the borrower’s NFIP (National Flood Insurance Program) policy has or will lapse. If the borrower provides evidence of replacement coverage, the property is removed from the force placed program without charge.