Blanket Home Equity and Second Mortgage Hazard Insurance

Spiro Risk Management, Inc. understands that tracking insurance on equity loans is time consuming and costly. We recognize that protecting the real property securing these loans is a major concern to lenders. Blanket Home Equity and Second Mortgage Hazard Insurance was developed to help best protect these properties, saving time and money in the process.

Coverage

The program provides all-risk, residential, comprehensive portfolio protection under a single blanket policy, eliminating the need to track and report individual equity loans with lapsed coverage. It is designed for financial institutions with second, third, or closed or open-ended equity loans. It eliminates the need to verify insurance coverage on individual properties for securitization.

One annual premium based upon portfolio size — at very reasonable rates — simplifies administration and protects your exposed loans. There are no additional charges or rate changes for the rest of the policy year, even if your portfolio changes. Tracking or reporting individual equity loans is not necessary.

Covered Perils

The policy provides broad coverage of typical, physical hazard exposure which can also include flood insurance.

Losses

In many situations, the mortgagor’s primary insurance will pay for losses incurred. However, all too often the limit is inadequate or insurance is not in place, and you, as the second mortgagee, are in jeopardy of losing your interest. The policy is designed to protect your interest in either situation. Losses are adjusted up to replacement cost with a low deductible.

Coordination with Mortgage Impairment Policies

Mortgage Impairment policies usually require that permanent insurance be obtained within a set time after discovering an absence of coverage. This policy provides this required coverage in a simple, easy-to-use program. We recommend purchasing a Mortgage Impairment policy in conjunction with the Second Mortgage Hazard Insurance.

Please note that the coverage summaries provided are for promotional purposes only. For a complete product presentation with additional information please call us. Our staff is ready to assist you.