Our agents are standing by
to help you. Click to chat.
  Live chat by LivePerson


 

How it Works

 
 
1. The lender builder's risk program is provided FREE OF CHARGE to the lender. The program administers a blanket builder's risk insurance policy written with the lender as the primary named insured. The policy is underwritten by The Chubb Group of Insurance Companies.
 
 

2. To implement the lender builder's risk program, the lender must have a licensed property and casualty insurance affiliate. The affiliate may be a licensed employee of the lender or an insurance agency subsidiary of the lender.
  
 

3. To obtain the policy, the lender completes a one-page application that can be mailed , faxed or emailed to OMNI Builders Risk. Once again, the blanket policy is provided FREE OF CHARGE to the lender.
 
 


4. OMNI Builders Risk forwards the completed application to Chubb Insurance Company for underwriting.

 
 

5. Once the application is approved and the policy is issued, OMNI Builders Risk executes a Sub-Agency Agreement with the lender's insurance affiliate so the lender can receive commission income from the program.
 
 
6.  OMNI Builders Risk schedules an employee orientation meeting for the lender's personnel to learn how the program works. OMNI”s Operational Guidelines are an integral part of the training process. This one-hour meeting may be a teleconference including many locations or the meeting can be conducted on site at the lender's offices. 		 
 
7.  OMNI Builders Risk provides the lender's personnel with Customer Brochures that introduce the program to the lender's construction loan clients. Please note the brochure asks the client to direct any questions or future claims to OMNI's toll free customer service department.
 
 
8.  Once the builder/borrower agrees, the lender's personnel use their password protected access to OMNI's secure website to initiate the builder's risk coverage. It takes approximately 5 minutes for the lender's personnel to enter information from the construction loan file to print the Certificates of Coverage for the loan closing. The average non-interest income to the lender is $32.40 per loan insured. 		 
 

9.   The client is given a copy of the Certificate of Coverage at the loan closing and signs a copy of the Certificate of Coverage to document the lender's loan file.

 
 
10.  The lender executes an EFT Authorization Form designating the account where premiums will be deposited following the loan closing. The insurance premium appears as a line item on the HUD closing statement and is deposited in the designated account at the lender bank.
 
 

11.  On the first day of each month, OMNI Builders Risk submits a report to the insured lender with details of each loan insured during the prior month. The lender is given 5 business days to review the report and to request any corrections.

 
 

12.  On or about the 10 th day of the month, OMNI will initiate an Electronic Funds Transfer (EFT) from the designated account withdrawing the net premiums for the loans insured during the prior month.

 
 

13.  The lender's insurance affiliate's commission dollars remain in the account to be swept monthly and recognized as income by the lender.

 
 
14.  Each loan is insured for up to 12 months and the premium is fully earned when paid at loan closing. When the construction loan is paid and the lender's staff closes the loan file, the loan should be deleted from OMNI's database of insured loans. The system will print a final Certificate of Coverage showing the actual coverage dates. This final Certificate of Coverage may be placed in the closed loan file to fully document the file.
 
 

15.  OMNI Builders Risk will identify any loans that remain in the system 60 days prior to their annual expiration date. OMNI personnel will call the lender to determine if the coverage needs to be renewed for an additional 12 months. OMNI Builders Risk will provide up to 24 months of coverage on any insured loan subject to the lender's request for the second year of coverage. The lender can renew the coverage on the OMNI webpage with just a few clicks of their mouse.

 
 

16.  If the lender does not provide renewal instructions or does not renew the loan on the OMNI webpage, OMNI will mail the lender an expiration/non-renewal notice 45 days prior to loan's renewal date.

 
 
17.  The OMNI system will automatically delete any loan that has not been renewed on or prior to the loan's annual expiration date. 		 
     
Copyright © 2010 Omni Insurance Services,Inc. All Rights Reserved.