Property claims adjusters need to stay alert to foreclosure activity. With 767,000 foreclosures in 2012 according to data from CoreLogic, the problem remains significant, and it could increase the likelihood of fraudulent insurance claims. To help you understand the scope of foreclosure risk in the United States, let’s take a look at five key insights from the CoreLogic data from 2012:
1. Still far above average: The 56,000 foreclosures completed in December 2012 put the total more than 175 percent higher than the monthly average from 2001 through 2006, before the mortgage crisis began.
2. Highest foreclosure numbers: The five states with the most foreclosures completed in 2012 were California at 100,000, Florida at 98,000, Michigan at 74,000, Texas at 57,000, and Georgia at 57,000. Carriers writing personal property business in those states should remain particularly alert, as they accounted for almost half the country’s completed foreclosures.
3. Highest foreclosure rates: The five states with the most foreclosures relative to all mortgaged homes last year were Florida at 10.1 percent, New Jersey at 7 percent, New York at 5.1 percent, Nevada at 4.7 percent, and Illinois at 4.5 percent. Again, carriers writing property business in those states should remain vigilant and prepare to investigate property claims with a foreclosure indicator.
4. Lowest foreclosure numbers: The states with the lowest number of completed foreclosures last year were Washington, D.C., at 89; Hawaii at 421; North Dakota at 521; Maine at 537; and West Virginia at 645.
5. Lowest foreclosure rates: The five states with the lowest foreclosure rates relative to all homes with mortgages in 2012 were: Wyoming at 0.4 percent, Alaska at 0.6 percent, North Dakota at 0.7 percent, Nebraska at 0.8 percent, and Colorado at 1 percent.
Are you looking for ways to protect your company from homeowners in foreclosure who file fraudulent claims? Take a look at ISO ClaimAlert™: Foreclosure, the newest tool in the ISO ClaimSearch® suite. It scans all claims as they’re submitted to ISO ClaimSearch, flagging those in foreclosure and notifying adjusters that they may need to investigate further.
To get a demo, contact your ISO representative or fill out this form.