- Broad Coverage
- Moderate cost to lender
- No borrower insurance tracking
- Low regulation risk
- Common name is blanket hazard insurance
Blanket Mortgage Hazard Insurance is used to transfer physical damage, theft and other coverage risk associated with dwellings and other structures that are typically contained in a Homeowners Insurance Policy (HO-2, HO-3, HO-5) or Condominium Association and Condominium Unit Owners Policies (HO-6). Blanket Mortgage Hazard Policies are typically all risk policies with the exclusion of water damage (flood).
The Blanket Mortgage Hazard Policy provides policy coverage to all active loans in the insured portfolio. There are no certificates to issue and no borrower insurance to track. Premium paid by the lender will be based on the portfolio’s outstanding loan balance, loss history, customized endorsements and deductible options selected.
Miniter’s experienced underwriters know when this blanket policy type will be cost effective. A cost effective blanket policy solution is based on the risk profile of your portfolio. HELOC, Condominium and some Residential 1-4 portfolios are potential candidates. Once we understand the risk profile of your portfolio, the Miniter underwriting team will select from the 40 available endorsements to customize the policy to maximize coverage at the lowest applied cost.
This is a blanket policy so no software technology is required. Monthly or annual outstanding loan balance (OLB) of the portfolio is the only reporting requirement. Portfolios that are running off may wish to consider a monthly OLB pricing model to align with decreasing portfolio balances. Finally, there are minimum regulatory requirement, however SFHA flood loans and GSO loans may need to be excluded from this policy. The Miniter claims processing system would be used to report a loss.