Lender Placed & Foreclosed Property Policy

LOSS EXAMPLES Lender Placed & Foreclosed Property Policy

The Lender Placed and Foreclosed Property Policy (LPF) has been designed to provide mortgage lenders and servicers with the insurance coverages necessary to protect their mortgaged and foreclosed properties and premises liability exposures. Insureds can pick and choose between the multiple coverages available. The only coverages not available on a standalone basis are Lender Placed Flood and Foreclosed Premises Liability Coverage. Lender Placed coverages are written on a single interest basis, providing coverage for limits up to the outstanding mortgage balance.

LOSS EXAMPLES Lender Placed & Foreclosed Property

Policy • Lender forecloses on residential • Lender requires hazard insurance on property. This property cannot be the mortgaged property. The lender covered under the lender’s first party discovers the policy is not in force and property insurance. A tornado hits the sends notice to the borrower to provide property causing extensive damage. proof of insurance on the property. A fire The lender may suffer a financial loss. occurs and destroys the structure. The lender may suffer a financial loss. • Lender forecloses on a property. A prospective buyer is inspecting the • Lender is informed of a fire loss to property and trips on a loose step and mortgaged property. The loss occurred gets injured. The lender may be held 60 days ago. The lender attempted to liable and suffer a financial loss. report the fire to the insurer whom the borrower had and discovered the policy was cancelled four (4) months ago. The lender may suffer a financial loss. • Lender determines the mortgaged property is in a special flood hazard area. The lender sends notice to the borrower that flood insurance must be obtained. The borrower fails to obtain the required insurance. Forty days of rain causes a flood totally inundating the

Berkley FinSecure provides property and the structure is destroyed. effective and efficient insurance The lender may suffer a financial loss. solutions and claims handling to the financial services industry and our empowered industry experts are dedicated to providing personal service you This material does not amend, or otherwise affect, the provisions or coverage of any insurance policy can rely on. Berkley FinSecure issued by any W. R. Berkley Corporation member insurance company. It is not a representation that is backed by the strength and coverage does or does not exist for any particular claim or loss under any such policy. Coverage protection of the W.R. Berkley depends on the facts and circumstances involved in the claim or loss, all applicable policy provisions, Corporation. and any applicable law. Availability of coverage referenced in this document can depend on underwriting qualifications and state regulations.