Lender Placed & Foreclosed Hazard

In-house Lloyd’s facilities for lending institutions covering lender placed hazard, REO properties, lender placed flood, and excess flood. Available nationwide, including US territories.

Harman Kemp has in-house facilities specifically designed to provide lending institutions with a comprehensive, flexible and competitive insurance policy. Coverage protects the lender on properties where the borrower has failed to maintain insurance (Lender Placed) and on foreclosed properties where the bank has taken back title (REO). All cover is underwritten 100% by certain Underwriters at Lloyd’s, rated A+ (Superior) by A.M. Best and AA– (Very Strong) by S&P Global. Insurance is available to any lending institution including commercial banks, savings banks, savings and loans, credit unions, mortgage bankers, property or asset management companies, and life companies.

Lender Placed & REO Hazard — Physical Damage

Up to USD 25,000,000 any one location

General Liability

Up to USD 4,000,000 any one occurrence / USD 10,000,000 aggregate

Lender Placed Flood

USD 300,000 residential / USD 500,000 commercial, any one location

Excess Flood

Up to USD 15,000,000 any one location, above primary NFIP limits

Hazard Deductible

Minimum USD 1,000 per occurrence (separate CAT deductibles may apply in coastal areas)

Flood Deductible

From USD 500 residential / USD 1,000 commercial

Coverage Basis

For Hazard policies, coverage is based on a Broad Form All Risks wording specially designed for lenders, including replacement cost valuation with no co-insurance. For Lender Placed Flood policies, coverage is based on the National Flood Insurance Program (NFIP). Commercial General Liability is available on all REO hazard policies as standard and can also be provided on lender placed hazard policies on request.

Our facilities allow full flexibility to tailor each account to the requirements of the individual lender.

Territory

Coverage is available nationwide, including incidental exposures in the territories and possessions of the USA.

Additional Coverages Available 

  • Scheduled Business Personal Property including machinery and equipment used as loan collateral
  • Loss of Rental Income (REO properties only)
  • Lender Placed Liability
  • Buildings in the Course of Construction
  • Ordinance or Law
  • Automatic Coverage Endorsement (included as standard on all policies)

Reporting

Underwriters require a monthly bordereau report within 15 days of month end, providing details of each declared property: name, address, declared value, effective date, cancellation date (if applicable), type of property, and premium due. Premium can be charged monthly or annually and is remitted monthly by bordereau. No minimum and deposit premium is required. A sample bordereau is available on request.

Please contact us to discuss your portfolio and coverage requirements. We can provide a sample bordereau report in the required format on request.