North American Facilities: Property Financial

We specialise in Financial Property Facilities providing coverage for financial institutions. This includes Lender Placed Hazard protection covering the property serving as collateral for mortgages. Coverage is provided where a property insured at loan closing is subsequently discovered to have original insurance that has lapsed, cancelled or non-renewed.

The policy provides for residential property on an ‘all risks’ basis or commercial property for fire, extended coverage as required of the borrower. It may also provide Lender Placed Flood coverage as required by the ‘Flood Act’ for properties located in certain Federal Emergency Management Agency (FEMA) designated flood zones.

Where a financial institution forecloses on a property following loan delinquency, it can be covered under a Real Estate Owned (REO) policy. The bank will usually attempt to sell the property as soon as possible, at which point coverage lapses.

We also offer Mortgage Impairment coverage, which protects a financial institution’s owned and serviced loan portfolio against physical loss or damage where no other insurance exists and the loan is in default. The policy also covers certain errors or omissions of the financial institution in the servicing arrangements of owned and non-owned loans.