REO Builders Risk
REO Builders Risk is an automated builder's risk insurance program designed to provide coverage for partially completed houses that a lender owns as a result of foreclosure. The coverage is designed to provide short-term protection for the lender as they take proactive steps to preserve their REO asset values by:
- Following REO Builders Risk guidelines regarding loss prevention including securing the property, draining plumbing, removal of A/C unit and property maintenance during the coverage period.
- Determining and actively initiating a workout plan for the property within the first 30 days of inception of coverage and executing the workout plan within 6 months of coverage inception. Renewals for an additional 6 months of coverage will be underwritten very closely and are at the option of the carrier.