Random Insurance thoughts
I have decided to add an ongoing Blog to my website about random insurance questions and/or thoughts that occur to me from time to time. I welcome your comments and responses.
Today I’d like to talk a little bit about Mortgage Errors and Omissions insurance. This is probably one of the more misunderstood coverages a Financial Institution needs. It is designed to cover a bank’s collateral on a Mortgage that somehow doesn’t have insurance on it at the time of a loss.
If the bank knows the borrower doesn’t have insurance, there is no coverage under THIS policy. It’s only when there is an ERROR or OMISSION in maintaining coverage on the collateral in question.
This does NOT force place insurance. It is not foreclosed property insurance. It only covers the instance when the property is destroyed and there just isn’t any insurance coverage on it.
Just a thought