Better coverage, lower price. This program helps your customers switch from the lender-placed hazard insurance (LPI) you purchased for their property to homeowners insurance that covers more, but costs less. Your customers can protect their homes better by working with an insurance agent.
Since regulators and GSEs now prohibit lenders from receiving money related to LPI or related transactions, we avoid any regulatory exposure because your company will not receive any money if your customer signs up for this program. However, HomeownerSelect™ will likely lower your total LPI insurance expense.
Yes, all qualified customers who choose to switch from their current LPI coverage will receive the minimum coverage provided by a surplus lines insurance policy issued by certain Underwriters at Lloyd’s of London.
As with all homeowners insurance, there are limits to what the policy covers. For example, coverage for your customer’s personal property is limited to 10% of the amount of coverage for their home up to a maximum of $25,000. Your customer’s personal liability is covered up to $50,000.
These limits may be lower than other homeowners policies but your customer’s current LPI policy provides NO personal property coverage and NO personal liability coverage.
Surplus Lines is a method of providing insurance when a risk will not qualify for traditional insurance. Lloyd’s of London surplus lines programs are often used to write insurance when sufficient underwriting information is unavailable.
Lloyd’s of London is the world’s leading specialist insurance market, holding an “A+” rating (Strong) from Standard & Poor’s, an “A+” rating (Strong) from Fitch Ratings, and an “A” rating (Excellent) from AM Best.
All customers who qualify for only the minimum coverage will receive surplus lines homeowners insurance issued by certain Underwriters at Lloyd’s of London. This coverage fully complies with your insurance requirements under your mortgage loan.
The quoted price includes all taxes and fees. One feature of surplus lines insurance is that your customer’s insurance bill will list all of the taxes and fees being charged. Your customer might be able to reduce or avoid these taxes and fees if they contact an insurance agent.
Yes, if they qualify. Not all customers will qualify, but if they received a HomeownerSelect™ offer, it’s likely that they will. All homeowners insurance programs require qualification.
To see if they qualify, a customer needs to do one of the following: (A) Complete and return by mail the enclosed Program Eligibility Form; or (B) Call the toll-free number shown on the letter to apply directly with a Homeowners Insurance Agent; or (C) Fax the completed Program Eligibility Form to the fax number provided on the letter.