BOSTON, MA--(Marketwired - Aug 14, 2014) - You buy a property and the lender imposes heavy insurance requirements on you. That's ok, they care as much about the property as we do, you think. You have visions of using all those good claim proceeds to restore the property to its prior glory after a loss.
But, can the lender take the claim funds, pay off the loan and walk away. Unfortunately, YES. The problem is in the "Casualty & Condemnation" section of the loan agreement.
See http://licatarisk.com/cms/risk-management-news-and-reports for a free copy of the article.
© Licata Risk & Insurance Advisors, Inc., 2014
About Licata Risk Advisors
Licata Risk is not an insurance company or a broker, and does not sell insurance. This is an important distinction. There is no conflict of interest. We work with mid-market companies up to $800 million in revenue. These services are available: Risk Assessment, Risk Audit, RFP & Competitive Bid Process Ongoing Risk Management.
The company is headquartered at 137 South Street, Floor 2, Boston, MA 02111-2838. Visit www.LicataRisk.com or call 617-451-2140, x312.