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The Power of GAP: Claim Spotlight

GAP Waiver provides supplemental protection to a borrower’s primary insurance and is designed to help borrowers avoid financial loss in the event of total loss or unrecovered theft. The difference between the loan/lease net payoff amount and the actual cash value (ACV) paid by the primary insurance settlement produces a deficiency balance or “gap.” This remaining loan/lease balance is covered (or waived) with GAP protection.Unitas Financial Services provides GAP coverage through only through lenders.

This is an extremely important question to ask. Since you pay premiums to protect your risks, you should be able to count on the protection in the form of fair and timely claim payments when you have a valid claim. What good is the relationship and protection if it doesn’t really protect you and pay when you need it? For products like Blanket Mortgage, Blanket VSI (single interest insurance), Collateral Protection (CPI), Blanket Equipment, Mortgage Impairment, Lender-placed Hazard and Flood, Gap Waiver and many more, a significant amount of money could be at stake.

Financial institutions have always wrestled with one main issue when it comes to tracking insurance on their loan collateral: staying properly protected at an affordable price. Since uninsured losses are rare, especially large losses, lenders try to spend as few dollars as possible on staff tasked with keeping track of insurance. However, the risk of a large uninsured loss and the regulations dictating that loans be properly tracked, lead to costs that are much higher than desired, as well as negative customer interactions, all of which could be avoided. 

GAP coverage, also known as, Guaranteed Asset Protection or Guaranteed Auto Protection, has been a popular loan protection product since the early 1990’s. However, there has never been another time when it’s benefit to consumers and lender has been as essential as it is today.  While obtaining GAP is an elective insurance--or waiver of residual loan balance in most states—there are many reasons why loan officers can and should make a persuasive purchasing argument to the buyer in today’s lending environment.

Mortgage lenders have a great deal of information to keep up with as the National Flood Insurance Program undergoes more changes. Here is a list of videos describing the latest changes in the NFIP program. This content is reposted from this link at FEMA.GOV. Maintaining accurate flood information can be challenging for financial institutions in the mortgage lending business.  Check out our FORCE-PLACED FLOOD COVERAGE.  Flood Protection provides coverage for lenders when a borrower fails to procure or maintain the required flood protection. Residential and commercial properties that are owner occupied, non-owner occupied, or vacant can be covered when the required flood protection is not maintained, canceled, lapsed or is deemed insufficient and the borrower does not secure a replacement policy. Also covered, are properties in flood zones without adequate flood insurance to meet the legal minimum required to protect the property.