MORTGAGE ERRORS and OMISSIONS (a Liability coverage) policies protect you as a lender/mortgagee if you fail to require, procure or maintain your customary coverage on real property collateral, and a loss occurs to the mortgaged property.
Optional extensions of Mortgage Errors and Omissions coverage include:
- Real Estate Tax Liability. Protects the lender against errors and omissions relating to non-payment of real estate taxes by the lender on behalf of the borrower
- Life and Disability Insurance. Protects the lender in the event of non-payment of mortgage life, accidental death or disability on behalf of the borrower
- Failure to Determine Flood Zone Liability. Covers the error or omission arising out of lender’s duty to determine whether or not a particular property is in a flood zone
- Compliance Procedures. Covers failure to maintain private mortgage insurance, and compliance with requirements from FNMA, FHLMC or GNMA