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Mortgage Impairment Insurance

Mortgage Impairment Insurance protects a lender’s interest in property by offering broad coverage for unknown or unexpected losses occurring from the day-to-day origination and servicing of mortgage loans – including physical damage and errors and omissions.


How Mortgage Impairment Insurance benefits a financial institution:

§    Insures the lender if property suffers a loss due to physical damage – when the borrower failed to maintain insurance for required perils (i.e. fire, flood…).

§    Endorsements are available to create “All Risk” physical damage protection including perils for which the borrower is not required to insure.

§    Errors and Omissions coverage:

a.      Liability in handling borrower’s insurance.

b.      Real Estate Tax Liability

c.      Processing mortgage life and disability insurance

d.      Failure to determine property is located in a flood zone

e.      Title Errors & Omissions

f.       Loss of secondary market guarantees (FNMA, GNMA…)

g.      Loss of VA, FHA, SBA, PMI coverage

Mortgage Impairment can be bundled with lender-placed hazard and flood insurance to create a comprehensive mortgage protection program.