Blanket Mortgage Hazard Policy
The Blanket Mortgage Hazard Protection is an annual policy that covers a financial institutions entire mortgage loan portfolio for property damage. This policy minimizes your financial institutions exposure to uninsured losses resulting from Borrower’s failing to acquire, and maintain adequate insurance.
The nature of a Blanket Mortgage Hazard policy allows for a financial institution to eliminate the need of tracking insurance policies, and force-placing insurance on uninsured mortgage loans. As a substitute for the Lender-Place Insurance program, the Blanket Mortgage Hazard policy covers your entire mortgage portfolio, giving you one policy to protect your entire mortgage portfolio.
The Blanket Insurance Policy is issued to a financial institution on an annual term. All eligible mortgaged properties are automatically covered during the policy term. REO (Real-Estate Owned) properties would require Force-Placing Fire and Liability insurance through our Lender-Placed Insurance program.
Blanket Mortgage Hazard Features & Benefits
Provides coverage on the entire loan portfolio
Provides coverage on residential, commercial and mobile home loans
Provides all-risk residential and commercial property coverage
Covers second mortgages and equity loans
Option to cover Real Estate Owned (REO) portfolios
Eliminates need for insurance follow-up after loan closing
Eliminates need to track and report individual properties for coverage
Covers uninsured physical damage without default or foreclosure
Pays claims at replacement cost versus ACV if lender opts to repair property