Lender Placed Insurance
Lender-placed insurance, also known as forced-placed or creditor-placed insurance, is the solution for safeguarding your portfolio.
The coverage is a specialty package or combination of insurance lines provided to lenders to protect their collateral interest in real property when a borrowers insurance protection has lapsed on an active loan, or when a lender assumes real property through foreclosure or repossession. Paired with our insurance tracking services, we have contracts with top A+-rated insurance carriers to provide widespread coverage.
Lender Placed Coverage
Hazard Insurance
Lender-placed Hazard Insurance is a type of property insurance policy initiated by a lender on behalf of the borrower when there is a lapse in the borrower’s coverage. The lender pays the premium and incorporates the insurance cost to the borrower’s monthly loan payments. This insurance protects the lender's financial interest in the property until the borrower reinstates their coverage.
Flood Insurance
Lender-placed flood insurance is a type of insurance policy that a lender purchases on behalf of a borrower when the borrower’s flood insurance coverage is inadequate, lapsed, or non-existent. This insurance is designed to protect the lender's financial interest in properties located in flood-prone areas, ensuring coverage against potential flood damage. Flood insurance is required for many Federally backed mortgage loans.
Blanket Mortgage Hazard Insurance
Blanket Mortgage Hazard insurance provides the same coverage as above, but eliminates the need to react to track insurance or renewals, cancellations or non-renewal notices. This form of insurance eliminates the need for insurance follow up after loan origination requirements have been met.
Business Personal Property
Business personal property (BPP) insurance covers financial losses resulting from damage, destruction, or theft of business property that the lender has a financial interest in as part of a loan.
Wind Insurance
Lender-placed wind insurance is an insurance policy that the lender puts in place when there is no active wind coverage for properties needing wind coverage due to their location, usually when this coverage has been excluded by the borrowers policy. Claims for wind insurance policies are generally related to damages caused by severe windstorm activity, such as gale-force winds, hurricanes, tornadoes, or hailstorms.
Automoble, Commercial Vehicles, Boats, Equipment, Recreational Vehicles, Etc. (“Moveables”) Insurance
Single-interest automobile insurance is designed to safeguard the financial interests of lending institutions. It provides coverage for potential losses linked to financed vehicles, ensuring that in the event of theft, damage, or total loss, the lender can recover the outstanding loan balance, thereby protecting their investment.
Builder's Risk Program
Builder's risk insurance is a specialized policy that covers buildings under construction, protecting against risks such as fire, theft, vandalism, and certain natural disasters. This insurance ensures contractors and property owners can recover financial losses associated with damage to the structure and materials during construction.
Real Estate Owned (REO) / General Liability
REO protects lenders against physical damage to real estate they own or have an interest in, including foreclosed properties. It can cover a range of liabilities and hazards, such as flooding, earthquakes, and general liabilities.
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General Liability insurance protects against claims of third-party bodily injury, third-party property damage, and advertising injury. Many financial institutions and real estate asset management firms require evidence of general liability insurance before engaging in business
*CP Insurance Associates works with a variety of top quality insurance carriers to meet the needs of our clients. The above coverage descriptions may differ based on your selected insurance carrier and policy options. Please refer to your policy for coverage limitations.
