What is forced-placed flood hazard and contents?

Flood hazard and contents force-placed insurance policies are specialized physical damage insurance that fills in gaps when property owners don’t obtain flood insurance or don’t have enough flood coverage. Because this is highly specialized insurance, lenders should work closely with a knowledgeable insurance agent, like QuieTrack, when selecting and setting up a force-placed flood insurance process.

Why do financial institutions need forced-placed flood hazard and contents policies?

Lenders that originate or service mortgages need insurance tracking and flood hazard and contents policies to comply with federal regulations as well as protect themselves against uninsured collateral losses.? National banks and federal savings associations are required to track flood insurance and ensure flood insurance is maintained for the life of the loan for collateral securing a loan in a Special Flood Hazard Area (SFHA).

Flood hazard and contents policies are available for buildings, residential and commercial structures, and commercial contents. Any lender interested in protecting their portfolio’s collateral from the risk of flood should speak with us at QuieTrack.

What protections do forced-placed flood hazard and contents policies provide?

Flood hazard and contents policies are specifically designed to protect a loan’s collateral from the peril of flood.?

Force-placed flood hazard and contents policies cover the lesser of the loan balance, replacement cost or the maximum coverage limit available from the National Flood Insurance Program (NFIP).? The coverage protects the collateral from physical damage due to flood.

For more information feel free to check out our website https://www.quietrack.com/flood-hazard-and-contents/ #QuieTrack #Insurancetracking #flood