Force-Placed Hazard, Flood, & REO
Force-placed Hazard/Flood protection provides all-risk protection for tracking insurance for hazard and/or flood when a borrower lacks adequate insurance on a mortgaged property. REOprotection provides liability coverage on properties owned by financial institutions.
Hazard Protection provides exposure coverage on residential and commercial properties that are owner occupied, non-owner occupied, or vacant. This coverage also includes bank-owned properties and mobile homes. Residential properties are protected against all risks unless specifically excluded. Commercial properties can be written as Special Form or Named Peril, depending on application information. Contents coverage is also available upon request.
- Prevents lapses in coverageby providing blanket coverage for 90 days from the date of cancellation or expiration on existing policies
- Eliminates negative borrower contactsas most renewals or reinstatements will be received within the 60 day window before notification is required.
- Reduces false force-placement and unnecessary debits/creditsof premium to loan accounts as force-placed requests are not required until the 90th day from the date of cancellation.
Flood Protection provides flood coverage on residential and commercial properties that are owner occupied, non-owner occupied, or vacant when the required flood protection is not maintained, such as:Property owner’s insurance is cancelled, has lapsed, or is deemed insufficient and the borrower does not secure a replacement policy
Properties in flood zones without adequate flood insurance to meet the legal minimum required to protect the property
REO/Foreclosure and REO Liability Protection is also available with the mortgage protection program to cover properties owned by financial institutions.