With record-breaking losses in the wake of Hurricane Sandy, mortgage servicers have been inundated with hazard and flood claims from borrowers. Your customer service team is often the first point of contact with a borrower who has experienced a significant loss of personal property. It’s an emotional time, but the advice provided by your customer service team can assist your borrowers with getting their insurance claims adjusted and paid quickly.

There are five key obligations that your insured borrowers must adhere to after experiencing a loss:

1) Your borrowers must notify their insurance carrier as soon as possible after the loss occurs. If notification is delayed, any additional damage to the property that could have been avoided if the carrier was notified promptly

may not be fully insured.

2) After notification, your borrowers should protect their property from further damage. For example, if there is a hole in the roof, your borrower is responsible for covering the hole and protecting the property from further damage. Your borrower should not worry about the cost associated with protecting the property as the expenses will most likely be covered by the insurer.

3) Your borrowers should take a detailed inventory of the damage and photograph it. They should then compare their notes with the claim adjustor after his inspection.

4) Your borrowers should separate the damaged property from the property that is not damaged. Attempts to salvage damaged property may be made by the insurance carrier.

5) Lastly, your borrowers must fully cooperate in the investigation.

Following these simple steps will assist your borrowers in getting insured claims adjusted and paid in a timely manner.