Frequently Asked Questions

How can I provide you with this information?

  1. You can fax a copy of your current insurance policy to us. Please include a copy of the letter we sent you with your insurance policy declarations page, and fax them to the number listed on the letter.
  2. You can mail a copy of your current insurance policy to the address listed in the letter.
  3. You or your insurance agent can call Insurance Tracking Center at the phone number listed on the letter from us. Our representatives are available Monday through Friday, 7:00 AM to 7:00 PM, Pacific time.

Back to the top

I have insurance; why did I get this letter?

There are several reasons that will cause a letter to be sent:

  • This letter was sent because we have not received a copy of your current insurance coverage. Your insurance agent or company usually handles this step, but in this case it was not completed.
  • We may not have received your insurance policy properly listing your lender as Loss Payee or the address that your insurance agent/company has is incorrect. Our correct Loss Payee name and address are on the letter we sent.
  • The insurance policy sent to us did not meet the parameters defined by the lender. Your letter outlines the specific reason and what you should do to correct the deficiency.

If your letter states your insurance has expired, we have not received a copy of the renewal coverage. If your letter states your insurance has been canceled, we have not received a copy of the reinstatement or evidence of other current coverage.

Back to the top

What does "Loss Payee" mean?

"Loss payee" is used on your insurance policy to refer to the lender servicing your loan.

Back to the top

What happens if I do not buy insurance?

If you do not buy your own insurance, your lender may buy insurance to protect their interest in your property. The insurance your lender buys will generally be much more expensive than what you can buy yourself. The loan agreement that you signed allows your lender to add the premium for this insurance to your loan and may also cause your payments to increase to cover the cost. The insurance your lender purchases will primarily cover their interest in your property, and may not completely satisfy your insurance needs. It probably will not include coverage for your contents (personal property) and liability. Although this policy may provide some benefit to you, we strongly urge you to purchase your own insurance from the agent or company of your choice.

Back to the top

What should I do if I do not have insurance?

Maintaining insurance coverage on your vehicle is a condition of your loan with us, so you should contact the insurance agency or company of your choice and purchase Comprehensive and Collision coverage naming us as the Loss Payee. You will find our name and address on the letter that we sent to you. There are many insurance agents and companies posted on the Internet or in your local yellow pages who can provide the coverage that we require, in addition to state mandated liability insurance.

Back to the top

Why do I need to provide my insurance information?

You are required to maintain Comprehensive and Collision coverage protecting our interest in your collateral as one of the conditions of granting your loan until your loan is paid in full. You will find this requirement in your Loan Agreement. By giving your insurance agent our name and address as Loss Payee, we will generally receive a copy of any change to your coverage. A letter was sent to you because we did not receive a copy of your policy/renewal/reinstatement from your insurance agent or company. We are asking for your help to show us that you have met requirement.

Back to the top

How much insurance am I required to have?

You are required to maintain standard dwelling fire or homeowners insurance adequate to cover the improvements (structures or dwellings) on property securing a loan. In addition, lenders, investors, or governmental/regulatory entities (i.e. Freddie Mac, FNMA, SBA, FDIC, etc.) may also have special coverage requirements that were described in the terms of your mortgage contract or deed of trust, such as earthquake, flood or wind. The letter you received usually describes the amount of insurance required.

Back to the top

I have provided proof of coverage and you still have no record of it. Now what?

It's possible that your proof of coverage was misdirected due to an incorrect address. Please contact your insurance agent and ask them to send a copy of your policy to the address shown on the letter. Request that your loan number and the correct loss payable clause be included as cited on the letter. You can also send your proof of insurance to us at the address shown on the letter. Please be sure to include your lender name and loan number.

Back to the top

You did not accept the proof of insurance I provided. Why not?

There are a number of reasons why the proof of insurance you provided may be inadequate to meet your lender's requirements such as:

  • The amount of insurance coverage is not sufficient to cover the cost of replacing the structure on your property.
  • The proper mortgagee clause was not included on the policy. See the required clause on the letter.
  • The insurance carrier providing your policy is not rated by A.M. Best as "B+" or better.
  • The deductible amount on your policy is too high.
  • Your current policy may have excluded coverage for wind and hail.
  • The name on your policy may not match the name on the loan record.
  • The policy your lender received is handwritten or illegible.

Back to the top

Why is force placed insurance so expensive?

Standard policies are underwritten based on multiple "risk factors" known to the insurer. The insurer has had the opportunity to underwrite your collateral including risk factors such as condition, experience, age, driving record, prior claims, etc. These and other factors define the risk exposure to your carrier. Force placed (creditor placed) insurance is non-underwritten and provided by the carrier on collateral in their portfolio when it becomes uninsured. Since the exposure to the carrier is unknown, the premiums are often higher for this type of insurance.

Back to the top