If you have any questions about our insurance policy, please contact your Hosper Investment Service Representative. No question is too big or too small – We’re happy to help!
1. What are Hosper's requirements for home insurance?
All Hosper mortgages require adequate home insurance. Before a mortgage closes, our legal team, Richardson Law, verifies that “adequate” home insurance is in place.
Adequate home insurance must cover either, a) full replacement coverage of the total value of all mortgages on the property, or b) full replacement coverage of the value of the property.
2. How is the Investor registered on the insurance policy?
The direct mortgage investor is registered in trust as a loss payee. In the event of a claim, Hosper would negotiate any claim on behalf of the investor.
3. What if the insurance policy is cancelled after the mortgage is closed?
In the event of an insurance policy cancellation, or lapse of payment, Hosper is notified in writing (by law) of the pending cancellation. We are generally notified 30 days before coverage is set to expire to give us time to reach out to the Borrower and confirm replacement coverage.
There would be some risk to the direct mortgage investor if the borrower missed the mail, or was unable to resolve the insurance within the 30 day period. Fortunately, due to Hosper’s scale, we have secondary coverage from Chubb Insurance. Our blanket insurance policy provides redundant coverage for all 1000+ active mortgages under Hosper management. This policy (cost covered by Hosper) kicks in if there ever is a gap or lapse in coverage.