Millions of borrowers purchase homes secured by mortgages each year. If you are a lender that deals in those mortgage-secured assets, you know how important it is to make sure the property protections do not lapse – even for a matter of days. A charge-off risk can be the result according to Apparent Insurance agents.
Disasters Do Occur
Disasters come in a variety of forms and are most often unexpected. The devastation can include:
Apparent Insurance specialists suggest most homeowners would be unable to pay out-of-pocket to repair property damaged by a disaster such as floods or fire. That means you would shoulder the risk as the lender. The homeowner would likely default on any mortgage payments due during the disaster as well.
Protection Is Security
To protect yourself or your company, a flood and hazard insurance plan could be the key when the borrower’s insurance coverage has lapsed. You can find coverage for:
- Commercial buildings
- Residential properties
- Storage buildings
- Foreclosed properties
You can also ask for automatic coverage on properties during the period when requests for proof of insurance are required.
The need to protect the lender’s interest by coverage from agencies such as Apparent Insurance has never been more important or relevant. Borrowers can easily find themselves in a foreclosure situation in this uncertain world. Protect yourself with disaster insurance.