Video: A guide for homeowners and insurance documentation.

Looking for guidance when supplying your insurance information? Watch this quick informational video, use our Q & A's or click on the Virtual Assistant for additional help.

Frequently Asked Questions

You, as the borrower, sign and enter into a mortgage agreement when you obtain financing for your property. The mortgage agreement may make you responsible for maintaining insurance on the property (which is the collateral for the loan) until you pay off the mortgage loan in full. If you fail to insure your home in the amounts and for the periods the lender requires, the mortgage agreement may allow us to protect its collateral and insure the property at your expense. The mortgage agreement requires you to maintain both a homeowners insurance policy with no exclusions for wind, hail, hurricane coverage AND a separate flood insurance policy (for a home located in a Special Flood Hazard Area).
Lender-Placed Insurance is insurance on mortgaged property placed by a bank/lender. The bank/lender will lender-place insurance:
  1. When proof of voluntary insurance has not been provided or has expired.
  2. When the insurance that initially covered the property was canceled or lapsed.
  3. When the insurance covering the property is not sufficient.
  1. Federal law and/or your loan documents requires us to provide one or more notices annually to you if acceptable evidence of insurance (homeowners, flood or wind) has not been received, encouraging you to purchase your own insurance policy and once done, to provide us evidence of such coverage.
  1. You do NOT own a Lender-Placed Insurance policy. A Lender-Placed Insurance policy is owned by us and may cover ONLY the balance of the mortgage loan you owe.
  2. Lender-Placed Insurance is a form of UNDER-INSURANCE because:
    • It may cover only the balance owed to us and not the Replacement Cost Value of the property.
    • It covers only the structures included as collateral for the mortgage loan and not your contents or loss of use.
    • If your property is underinsured you do not have complete financial protection in the event of a catastrophe/natural disaster. Therefore, if you file a claim, you may receive a limited settlement amount and may have to apply for a loan to restore your property.
    • You will be billed for the cost of Lender-Placed coverage. Lender-Placed Insurance is NOT free.
    • Lender-Placed Insurance premiums are generally higher than the homeowners, wind or flood insurance you can purchase on your own.
    • You cannot or do not renew or purchase a Lender-Placed Insurance policy directly.
  • To avoid being lender-placed, you or your agent/carrier must timely present proof of having purchased your own policy.
  • Pay insurance premiums on time and provide proof of insurance coverage on a timely basis if you are responsible for paying the premium.
  • Ensure the policy holder name and property address listed on the policy matches your loan’s borrower name and property address exactly.
  • Ensure we are listed as the Mortgagee with the correct mortgagee address. If you are unsure of what this is, please contact us.
  • If the insurance is escrowed, ensure that we receive the renewal policy and bill prior to the renewal date so it can be paid from your escrow account.
  • If changing insurance companies, it is important that there is no interruption between policies. It is also a good idea to notify us of any change in insurance company and provide proof of coverage, instead of waiting for a copy to be mailed from the new insurance company.
  • To ensure timely acceptance of your information please ensure you upload a policy declaration or other industry approved Certificate of Insurance for the policy term requested, ensuring it contains ALL the following required data elements:
  • Borrower Name, Property Address, Loan Number, Policy Type (Fire, Flood, Wind), Carrier, Policy Number, Policy Effective and Expiration Dates, Coverage Amount, Deductible, Annual Premium (if escrowed), and Mortgagee Clause.
We must be listed as the Mortgagee with the correct mortgagee address. Some carriers may have the incorrect address or may rely on either you or your agent to send the information to us.
While we will make every effort to update your insurance information as quickly as possible, your account may not reflect this information for 7-10 business days, pending a review and confirmation with your agent/carrier, if needed.
Our Lender Placed Policy covers all properties regardless of condition or occupancy status without inspection.
Per your loan agreement you are required to maintain insurance at all times while the loan is active. In the event that a lapse occurs we have the right to purchase this required insurance at your expense. This is to protect both of our interest in the event of a lapse and potential loss. We will cancel this insurance upon receipt of your policy information and will only maintain coverage for an actual lapse.
As soon as we are notified of any potential lapse in coverage, we are required to notify you. As a mortgage servicer, we are required to ensure that your property has continuous coverage for the investor’s required amount. The lender-placed insurance company we use as a last resort has agreed to provide this retroactive coverage to ensure compliance with your loan agreement. We understand that you may not be able to obtain back dated coverage with your agent, which is why it is so important that your policy does not lapse and you maintain continuous coverage. Many times you will receive notification from your carrier prior to us receiving it.