Impairment
Mortgage Impairment coverage protects your lender/mortgagee’s interest when you are unaware of a lapse of insurance coverage, and a loss occurs to the mortgaged property. You remain covered as long as you meet three criteria:
- The borrower (mortgagor) does not make the customary mortgage payment on the due date.
- You have taken all customary steps, other than foreclosure or sale, to collect the unpaid loan balance.
- You have not released the mortgagor or other parties from payment because of loss or damage to the mortgaged property.
J. B. Lloyd mortgage impairment coverage is available in the following formats:
- Checking basis – Lender must continue to track all insured properties for renewal status of insurance policies and procure coverage (i. e. “force place”) when it is discovered that there is no coverage in force.
- Ex-checking (exceptions-only) basis – Lender is not required to track renewals of insurance policies, but when it is discovered that there is no insurance coverage in force, it must procure, or “force place,” coverage.
- Ex-checking with deletion of insurance procurement requirement – Basis of coverage relieves the lender of procuring insurance coverage when it is discovered that there is no insurance coverage in force. Note that claims are only paid with this option if the loan goes into default.
- Balance of Perils coverage is also available as a Mortgage Impairment option – coverage protects the lender in the event of a loss where coverage was not required of the borrower under the lender’s standard mortgage agreement. Coverage also applies to flood losses in excess of that required to be insured by the borrower to comply with the Flood Act.
CONTACTS
Jim Lloyd
President, J.B. Lloyd & Associates
A division of U.S. Risk Insurance Group, Inc.
(469) 983-7147
TEAM MEMBERS
Tim Bennett | (440) 455-3881 | tim.bennett@usrisk.com
Beth Boisseau-Coots | (469) 983-7115 | beth.coots@usrisk.com
Aaron Cardwell | (469) 983-7104 | aaron.cardwell@usrisk.com
Fred Eickhoff | (469) 983-7136 | fred@lloyd-ins.com
Pam Schultz | (469) 983-7223 | pams@usrisk.com