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The Value of Using an Insurance Broker for Lender-Placed Insurance

Updated: May 2, 2023

January 26, 2023


Bankers and other financial professionals prioritize the protection of their customers and their assets. One way to do this is by ensuring that the property securing a loan is adequately insured in the event of a loss. To achieve this, lenders or mortgage servicers obtain lender-placed insurance on behalf of the borrower if the borrower fails to maintain adequate insurance coverage on the property. Lender-placed insurance is intended to protect the lender's interests and ensure that the property is properly insured, even if the borrower does not have their own coverage.




Working with an insurance broker can be a valuable resource when it comes to finding the right lender-placed insurance coverage. Here are a few reasons why:

  1. Expertise and knowledge: Insurance brokers have a deep understanding of the different lender-placed insurance options available and can help lenders understand the pros and cons of each option. We can also provide valuable guidance on coverage levels and policy exclusions.

  2. Time-saving: Shopping for lender-placed insurance can be time-consuming, especially if you are unfamiliar with the different options and terms. Ross & Yerger can do the legwork for you, saving you time and effort. We can compare quotes from multiple insurance companies and help you find the best coverage at the most competitive price. Different insurance companies work best with different size loan volumes, and we can help find the perfect fit.

  3. Independent advice: Insurance brokers are not tied to any specific insurance company or tracking provider, which means we can provide unbiased, independent advice. We will work to find the best coverage at the most competitive price, rather than trying to sell you a particular product. This can give you peace of mind knowing that you are getting the coverage that is right for you, rather than being swayed by a sales pitch.

  4. Assistance: If you need help filing a claim or paying your premium, Ross & Yerger can provide valuable support and guidance. We can help you understand the claims process, ensure that you have all the necessary documentation, and advocate on your behalf if there are any issues. Having an insurance broker on your side can make the process smoother and less stressful.


In summary, using an insurance broker like Ross & Yerger can be a valuable resource when it comes to finding the right lender-placed insurance coverage. Our expertise and knowledge can help you make informed decisions about your insurance, ensuring that you have the protection you need to secure your investment.


Travis Clayton

VP, R&Y Shareholder

601-944-0967


 

ABOUT ROSS & YERGER


Ross & Yerger – one of the largest independent, privately-held insurance agencies in the Southeast – was established in 1860 and is headquartered in Jackson, MS. The firm has 127 employees throughout their five offices in Jackson, Tupelo, Hattiesburg, New Orleans, and Memphis. Ross & Yerger is licensed in all 50 states and offers a full range of brokerage services, including insurance, employee benefits, bonds, financial services, and risk management consulting. For more about Ross & Yerger, visit www.rossandyerger.com.


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