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Property Preservation Insurance

General Liability and E&O for Lenders

What is Property Preservation?

As the economy, and in particular the housing market, continue to be depressed foreclosure businesses are booming across the country. As homes are foreclosed there is a need for these properties to be repaired, cleaned and maintained. These services help bank-owned properties from loosing value by making repairs, cleaning, cutting the lawn, winterizing, providing pool service etc. Banks and other lenders who either can’t sell or want to hold onto properties until the real estate recovery begins are increasingly employing companies to keep them in good condition.

Property Conveyance

There are also requirements that must be completed before a property can be transferred to HUD and FHA. This is called putting a property into conveyance condition. FannieMae has also developed servicing guidelines for property preservation work that outline the allowable reimbursement amounts for property preservation functions. These guidelines can be found online at efanniemae.com. Mortgage lenders, mortgage servicers and mortgage investors are calling for increased property preservation training to insure that the will be a sufficient number of competent contractors to service the growing number of foreclosed and abandoned properties. This type of training is essential for the new property preservation contractors as well as the experienced ones where HUD and FHA guidelines and procedures are outlined. Such training is available online at sites like webexam.us.

General Liability and E&O Insurance

In addition to understanding the necessary guidelines that govern property preservation contractors also will be required to have General Liability Insurance and may also be required to carry E&O coverage. This is a very specialized market niche for insurance agents and LBi Services specializes in providing this coverage to property preservation contractors across the country. Our $1 Million dollar limit General Liability Insurance Policy starts as low as $1,350.00 per year with a built in blanket additional insured clause allowing you to add as many mortgage providers as necessary to your policy. Our competition could charge you as much as $100 in additional fees to add each additional insured to your policy. Our E&O insurance will run an average of $1,500 per year.

For more information on property preservation insurance
contact David Judge at (214) 536-5794.