Many insurers are starting to realize that once a property enters a state of foreclosure, the potential for losses can increase, due to vandalism, water damage, arson, etc. Insurers that are able to identify policies in the foreclosure process will be able to take proactive steps to minimize losses by:
* Requesting a property inspection
* Determining occupancy status (occupied, vacant)
* Revising coverage
* Increasing premiums
* Issuing a cancellation or non-renewal notice
“Due to the current economic conditions, foreclosures will continue to be a problem in 2009 and beyond,” explains Dan Munson, founder, RiskMeter Online. “With unemployment figures rising, home values depreciating, fewer people qualifying for refinancing and more mortgages under water, homeowners are either walking away or finding it tougher to make their mortgage payments. Insurers who can identify policies in the early stages of the foreclosure process, will at least be able to take proactive steps to minimize any losses,” says Munson.
