Insurance Expectations


Financial institutions expect extremely quick turnaround on claims because a delay in determining the value of the insurance settlement can hold up the sale of the property.


“You want very prompt attention, you want the adjusters out there, you want to know the guidelines, what is and isn’t covered, right up front.”


Patricia Dennis, Zions Bancorp


Financial institutions holding foreclosed properties have different goals than the typical insured. A slow loss adjustment and settlement process will delay the sale of the property, which is the bank’s goal. Most of the time, the bank won’t repair the building so it can avoid any post-sale liability related to the repair. Therefore, banks are seeking a prompt actual cash value settlement, with a fair calculation of depreciation. Insurers can also help bank risk managers give credit department staff guidelines for reasonable expenses to ensure that the asset warrants that level of expenditure.


Copyright © 2012 by A.M. Best Company, Inc. All rights reserved. No part of this report may be reproduced, stored in a retrieval system or transmitted in any form or by any means; electronic, mechanical, photocopying, recording or otherwise.


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