LENDER PLACED HAZARD AND FLOOD

coverage, often called FORCE PLACE or

FORCED PLACE insurance is purchased by lenders to protect their collateral interests in real property.

*when they become aware of insurance lapses on an active mortgage loan or
 
*after a borrower's real property is acquired through foreclosure.

Both events require immediate response. The J. B. Lloyd & Associates proprietary lender placed insurance program provides you instant coverage under a master policy. A simple online reporting entry registers any property, and our Errors and Omissions coverage is available to protect you in the event of an inadvertent reporting failure.

You also enjoy automatic coverage during the "letter cycle," that period in which the lender formally informs the borrower that tracking indicates an apparent insurance lapse and demands evidence that coverage has been replaced. If a property is in fact uninsured during this cycle, your J. B. Lloyd coverage will be backdated to the date of the borrower's lapse of insurance, protecting you in the event of a claim.

With foreclosures on the rise lender placed coverage has never been more relevant. Increasing policy lapses underscore the need for immediate replacement of coverage to protect the lender's mortgage interest, so this coverage is a necessary part of the Risk Control Plan for any mortgage lender or purchaser of distressed loan assets (Real estate Owned or REO).