The U.S. Risk Financial proprietary lender placed insurance program provides the lender immediate coverage under a master policy. A simple online reporting entry registers any property needing coverage. Our Errors and Omissions coverage is available to protect you in the event of an inadvertent reporting failure.

Automatic Coverage during the “letter cycle” is available. This is the period in which the lender formally informs the borrower of an apparent insurance lapse and requests evidence of existing coverage. If a property is in fact uninsured during the notification period, your U.S. Risk Financial coverage may be backdated to the date of the borrower’s lapse of insurance.

With foreclosures on the rise lender placed coverage has never been more relevant. Increasing policy lapses underscore the need for immediate replacement of coverage to protect the lender’s mortgage interest. This coverage is a necessary part of the Risk Control Plan for any mortgage lender or purchaser of distressed loan assets (Real Estate Owned or REO).

Foreclosed Property owned by lenders (REO) or investors in REO properties may also be covered by the same U.S. Risk Financial Lender Placed policy used in Force Place. This provides a guaranteed, easy-to-manage system of covering FORECLOSED / REO properties. Rates are usually lower on Foreclosed Property, thus minimizing insurance costs to the lender while providing the broadest coverage. Coverage is issued under a master policy with no individual underwriting of specific properties. U.S. Risk Financial also offers General Liability as well as Hazard Coverage for foreclosed properties.

Extremely broad coverages in the U.S. Risk Financial proprietary Lender Placed policy furnish a checklist for industry comparisons.

• General Liability insurance for foreclosed properties
• Wind and Hail coverage in ALL coastal areas
• Builders Risk is available for partially completed structures
• Condominium coverage
• Flood and Earthquake (excluding California Earthquake)

Force Placed Flood endorsements with minimum deductibles may be substituted for the standard.

The standout features of the U.S. Risk Financial proprietary lender placed policy are:

No coinsurance requirement. While traditional insurance requires the property to be insured to at least 80% of its replacement cost, this is not feasible on a Force Placed / Foreclosed Property Policy, as many banks, other lenders and REO investors place coverage on the outstanding loan balance or original cost of the property. The resulting coverage amount is often substantially lower than its replacement cost. Waiving this percentage of-replacement-cost or coinsurance eliminates penalties that would otherwise be assessed in claims settlements.

Reporting system. The Web-based reporting procedure for the U.S. Risk Financial program is user-friendly and tailored to the needs of the lender.

Coverage to term. Once a property is entered into the U.S. Risk Financial system, it remains until coverage is modified or cancelled. This relieves policy holders from constant monitoring and periodic re-entry of a property to maintain continuous coverage.

Coverage charge for actual term. Premiums under the U.S. Risk Financial program are calculated on the exact time coverage remains in effect. If coverage is cancelled mid-month you are only charged for the number of days coverage was in force. There is no minimum coverage term.

Lender Placed Hazard and Flood Fact Sheet