Lender-Placed Insurance

Lender-Placed Insurance, also known as Force-Placed Insurance, is a vital program for any sized financial institution to alleviate risk and protect their loan portfolio from uninsured losses. Financial institutions can utilize our Lender-Placed Insurance program to place instant coverage on properties they have an interest in if a mortgagors’ insurance policy has lapsed, cancelled or the financial institution deems the homeowners’ insurance to be insufficient.

We offer a Lender-Placed Insurance program to help financial institutions reduce risk from uninsured losses ultimately protecting their bottom line. Our knowledge and experience have made us a leader in the industry for over 50 years. We work with top national insurance companies to provide competitive rates and quality coverage to ensure your financial institution is protected.

The following are a few examples of when a lender may force-place insurance coverage:

  • The borrower does not currently have an insurance policy, either because they did not purchase a policy, or because the policy was cancelled after the renewal premium was not paid.

  • The lender has not received proof of insurance coverage (even though the homeowner may have coverage in place.) Once a lender receives the proof of insurance, the force placed insurance coverage can then be canceled. After the force-placed coverage is cancelled, the borrower will only be billed for the time they were without insurance.

  • There is an insurance policy in place, but the amount of coverage, deductible or type of coverage does not meet the lender's requirements.

Lender-Placed Insurance is a policy that is ultimately meant to protect the lender from uninsured losses and will not typically provide coverage for the borrower’s personal property. The purpose of lender-placed insurance is to provide immediate coverage on uninsured collateral (property/dwelling). A lender utilizes force-placed insurance to ensure that their collateral is insured in the event there is property damage or loss.

 

Lender-Placed Insurance Features & Benefits

  • Customized to client needs whether big or small, including coverage, maximum limits and deductibles

  • Premium earned on daily, pro-rata basis

  • Itemized billing for all coverages and transactions

  • Monthly, or annual billing options by property

  • Reporting of properties by customer’s choice: fax, email, website or electronic data transfer

  • Simple website administration via online solution (details below)

  • Immediate coverage with no waiting period

  • Fast, efficient and expert claims processing

  • Decreased losses in your mortgage portfolio

  • Access to website solution so that your institution can easily and instantly place and manage insurance coverage

 

Lender-Placed Insurance System Features

  • Add, cancel or change coverage

  • Calculate pro-rata premiums

  • View and print loss status and history of individual properties

  • View and print property premium billing history

  • Print property file sheets showing coverage and transaction history

  • Print an in-force property report for all properties insured on a given date

  • Print monthly bills from website

  • Print debit and credit premium escrow tickets from monthly billings by coverage

  • Print three most recent monthly invoices, which the website archives

  • Manage reports by adding departments to separate divisions or asset managers

 

 

 

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