Repossessed Property Coverage For Your Bank

Standard bank property and general liability insurance exclude both physical damage and liability coverage for repossessed autos, watercraft, and aircraft. You can usually add coverage to your auto policy for repossessed autos (and in some cases watercraft). The best practice is to talk with your agent if you repossess autos, watercraft, or … [Read more...]

Protect REO Property From Pipes Freezing

Your foreclosed / REO properties are probably insured on a property insurance policy. There is almost always a clause in those insurance policies that excludes coverage for damage from frozen pipes unless you maintained heat or drained the plumbing systems. Your maintenance team should either drain and winterize plumbing systems or regularly … [Read more...]

Semantical Bank Insurance Silliness

For the 238,000th time, I have been asked why insurance is so unnecessarily complicated... I have no good response. In 40 years I never have. Probably will not 40 years from now. Regulators and some insurers call two different policies "Mortgage Errors and Ommissions." The first is coverage for a borrower who fails to buy insurance after you … [Read more...]

Pollution Liability Insurance For Lenders

An almost universally uninsured exposure for most bankers is liability and cleanup costs for REO properties found to have pollutants. The specialty insurer Beazley announced that it has an insurance solution, "Site Lender Environmental Asset Protection." I have no details yet. I have reached out to the insurer. More when I know it. Their … [Read more...]

Stop Tracking Customer Insurance – At Least HELOCs and 2nds

Is your bank still tracking customer insurance coverage on your mortgages? Consider buying an insurance policy that protects your bank while eliminating the need to track coverage.  So-called, Blanket Insurance, is available for all your mortgages.  You transfer the risk of "no-insurance" to the insurance company. The best place to start is … [Read more...]

Mortgage Impairment

Ask three questions when talking with your insurance agent about mortgage impairment insurance coverage: 1) Do we track customer renewals, cancellations, or neither? 2) Does this cover mortgage impairment by flood when flood insurance is required peril? 3) Does this cover mortgage impairment by flood when flood insurance is not a required … [Read more...]

Stop Tracking Your Customer’s Insurance!!!

For years I have been telling my bank and credit union clients to stop tracking their customer's insurance.  Really, stop! When you write a mortgage, you require that the customer buy property insurance (and maybe flood insurance). Then for the life of the loan, you track their insurance. Maybe you file renewals. Maybe you only respond to … [Read more...]

Is there an Impairment in your Mortgage Impairment Policy?

Questions are flooding in on this one... You have mortgages. Your mortgage customers are supposed to buy insurance on their property. What if they don't? If you know your customer has no insurance, you "Force Place" the insurance. What if you don’t know? Mortgage impairment insurance protects your bank from the-peril-of-no-insurance. … [Read more...]

Overview of Bank Insurance in Three Minutes

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The Perils In Your Mortgage Impairment Insurance

Mortgage impairment insurance pays for losses to mortgaged properties when the customer defaults on their loan due to a "re or other catastrophe. Many mortgage impairment policies limit the coverage to perils required by your bank’s mortgage documents — a very low standard in most cases. Look for coverage for special perils, all risk, or on an … [Read more...]