Getting Properties Insured
The first step when a bank takes control of a property is getting it insured, and for larger properties, that requires looking ahead.
“They should contact their broker pretty quickly, and the faster that broker gets back to the carrier, then we’ve got something where we can all manage the risk in a much better way.”
Christopher Taylor, Zurich
In the best situation, the risk management team is in regular contact with the asset management team to discuss upcoming foreclosures on larger-valued properties. This allows the insurance buyer to start gathering information on the property. By starting earlier, the bank increases its chance of obtaining coverage quickly and with the most favorable coverage terms. Simultaneously, the bank must have a representative visually inspect the inside and outside of the structure, as well as the HVAC units. Without documentation of the condition of the asset at the time of foreclosure, the bank may not be able to collect on a theft or vandalism loss.
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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