Hazard Insurance for REO Properties

REO Guard

Hazard Insurance for REO Properties

REO Guard coverage protects real estate owned (REO) properties in foreclosure or default when no insurance coverage is in place. REO Guard has been bundled, in most cases at no additional charge, with National Vendor Management Services (NVMS) property inspection services at the time of acquisition to verify the condition of the property on the date of possession.

Key Features Applies To Coverage Requirements

Master policy names lender as the insured
Instant binding authority
Not individually underwritten
Reporting form policy with online reporting tool
Claims settled at Replacement Cost Value
Dedicated customer service and support
Premise liability available on a pick and choose basis

Key Features

Master policy names lender as the insured
Instant binding authority
Not individually underwritten
Reporting form policy with online reporting tool
Claims settled at Replacement Cost Value
Dedicated customer service and support
Premise liability available on a pick and choose basis

Applies To

Financial Institutions: mortgage servicers, community banks, credit unions, etc.
Investors

Coverage

Losses are adjusted at replacement cost regardless if repairs are made

All risk coverage, including wind, for residential and mobile home properties
Named perils for commercial properties
Optional coverages include:
- Liability: available with underlying hazard policy
- Commercial all-risk
- Residential vacant theft
- Foreclosure & demolition
- Automatic coverage
- Commercial contents & equipment
- Farm outbuilding & equipment
- Terrorism

Requirements

Completed REO Guard application
Property listing spreadsheet with full addresses, occupancy status, etc.

ADMINISTRATIVE SERVICES

Claims Settled at Replacement Cost Value

With REO Guard, claims are settled on a replacement cost basis vs. Actual Cash Value. This results in significantly higher settlement when claims are adjusted on replacement cost basis. Claims are settled at RCV even if the property is not repaired. The decision to repair the property is the lender’s choice.

Reporting

Flexible reporting options are available, ranging from web-based self-reporting to automated lender placement and full outsourcing with servicing system integration.

Proctor uReport

uReport is our proprietary reporting tool for automated lender-placement, tracking policy expiration dates, edit billing functions, premium calculations, claim reporting, and lender-placed borrower notifications.

Customer Service

Dedicated Proctor representative to assist with refunds & billing options.

Enhanced Services

REPLACEMENT COST VALUATION

ValueNOW is a real time property replacement cost valuation tool for residential and commercial properties using three national public property data sources.