Section 14: Hazard Claims
Hazard Claims Overview
The servicer must adhere to requirements set forth in the insurance carrier’s policy within the time period specified in said policy. This includes, but is not limited to, notifying the carrier of a change in risk, occupancy, ownership and submitting proof of loss upon notification of damages. Notification of damages may include, but is not limited to, inspections, code officers, neighbors, etc.
The servicer must continue to preserve and protect the property while awaiting the decision from the insurance carrier (borrower’s or Lender Placed carrier).
Once funds have been received, the servicer must refer to Servicing Guide B-5-01: Insured Loss Events to apply funds appropriately.
Servicer is to proceed with repairing damages deemed non-claimable/non-recoverable by utilizing any available allowable thresholds or by submitting over allowable bids via HomeTracker. Refer to Section 5: Initial Securing and Initial Services within this Property Preservation Guide for further details.