Insuring Your Collateral

One of your loan officers is calling. A member who has his mortgage with you can't find homeowners insurance to replace the policy that was cancelled after his family had its second house fire in six months. The upshot: There is no insurance on the home -- on your collateral. Knowing the ins and outs of real estate insurance can help your credit union (CU) better navigate some pretty tricky waters. Your first tactic against an uninsured property is tracking member insurance coverage, something most CUs do. To get protected follow these four tactics: 1. Include automatic coverage in forced-placed insurance protecting your CU's interest in the property in case of insured loss. 2. Buy "mortgage errors and omissions insurance." 3. Buy "mortgage impairment insurance." 4. Consider "mortgage hazard insurance."