Blanket Home Equity/Second
Mortgage Protection
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Primary Coverage
Provided
This Blanket Second Mortgage/Home Equity Coverage will provide your institution
with a policy that insures the bank against uninsured losses on any home
equity or second mortgage loans (any mortgage loan other than a first
mortgage is covered by this plan). The other major benefit of having this
policy is that your institution is relieved of the responsibility to keep
track of insurance policies on covered loans. The only requirement for
coverage is that your institution verifies that insurance is in place
when the loan is made.
This insurance is excess over any other coverage and is designed to strictly
cover your institutions interest in covered loans and shall in no event
benefit the mortgagor or any other party.
Policy Provisions
The insurance company's coverage limit is $100,000 per loan/per occurrence.
In the event of a claim, your institution will receive the lesser of:
A. The amount it would cost to repair or replace the property with material of like kind and quality.
B. The outstanding balance of the second mortgage/equity loan on the property.
This policy provides
All Risk Physical Damage Coverage, subject to policy exclusions (these
exclusions are standard exclusions found on a homeowners policy). The
deductible for this policy is $250 per occurrence. There is no coverage
for contents or liability, unless these have been added to the master
policy. There is no requirement for your institution to track insurance
(cancellations or renewals) on loans covered by this policy. It is also
unnecessary to force place insurance coverage if you become aware that
a property is uninsured, however, the bank may force place coverage if
it is desired.
Annual Premium Quotation
The first year’s premium for your policy will be based on your reported
second mortgage and home equity loan totals for each twelve-month period.
For more information feel free to Contact Golden Eagle Insurance
