How does REO Builders Risk Insurance work?
REO Builders Risk Insurance begins with comprehensive blanket builders risk insurance policy owned by the lending institution. The lender uses our patented software to initiate coverage on partially completed foreclosed homes. Our software allows the lender to generate a Certificate of Property Insurance detailing the coverage provided each insured loan. The lender pre-pays for 6 months coverage, however return premiums are pro-rated on a monthly basis and refunded to the lender for early cancellation of coverage. Coverage is written on a Replacement Cost basis (without deduction for depreciation) and is subject to a $2,500 per occurrence deductible.
