Types of Claims


Claims on OREO policies are typical of other property claims, but they are exacerbated by the fact that the properties are usually vacant.


“Where you have high vacancy, you have almost twice as many claims that happen, you have almost twice as many police calls that happen.”


Christopher Taylor, Zurich


The types of losses insurers see on foreclosed properties under OREO policies are the same as for any other property, but the fact that properties are vacant increases the risk. For example, vacant properties will often have the power shut off and the air conditioning turned off, raising the risk of mold in high-humidity areas. Keeping the heat off can result in frozen pipe claims. Vacant commercial properties have become targets for professional thieves who strip all of the copper wiring from the building.


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