Valuation Indemnity

Introduction

In a bid to speed up the lending process and reduce costs, many mortgage lenders have started using desk-top or drive-by valuations, particularly for remortgages. Despite the obvious benefits however, this fresh approach can bring added risks. Excel Insurance Solutions has developed an exciting and innovative new product, Valuation Indemnity, designed specifically to protect mortgage lenders who face increased exposure to their security.

A new approach

The use of automated valuations is becoming more common but if the borrower defaults, and you are forced to exercise a valid power of sale, there is a risk that the value of the property when it was originally valued was not accurate. You may subsequently discover that at the time the property was valued, the true value was in fact lower, putting your loan security at risk. The inaccurate valuation may not be significant on an individual property, but over your entire portfolio, and over time, this could amount to very serious losses.

Simple and flexible

Our Valuation Indemnity policy provides you with comprehensive protection for such losses based on the difference between the 'stated value' of a property at the date of the mortgage and what the 'actual value' was - provided such loss exceeds 5%. Plus, the valuation indemnity cover is designed to fit round you and can be adapted to suit your range of mortgage products - tell us how you use automated desktop or drive-by valuations and we can tailor the policy to suit you.

Valuation - Key benfits

  • Reduced costs as a result of using desk top, automated and drive by valuations, as opposed to traditional valuations safe in the knowledge that the risk to your loan security is protected
  • Reduced internal administration costs - no need to arrange traditional surveys, no need to chase them etc
  • Where a shortfall is discovered a claim will be dealt with quickly - negligence does not have to be proved against the valuer
  • Increase speed, efficiency and certainty in your lending process
  • Enables you to provide transparency on pricing to borrowers and therefore comply with relevant FSA regulations.

Our policy wordings are available on request. Please click here to contact us and request a copy.

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Excel Insurance Solutions - protection for a changing future.