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Foreclosure: The $10 Billion Problem Claims Departments Face

Foreclosure remains a problem in the United States, and claim departments need to stay vigilant. According to data from CoreLogic, 1.3 million homes were in foreclosure in August 2012 — that’s approximately 3.2 percent of homes with mortgages. And with the strain that foreclosure places on homeowners comes the temptation of impropriety. A claim payment may seem to be an answer to significant — seemingly insurmountable — financial problems. To protect your company and your other policyholders, your adjusters need to know when a claim involves a foreclosed property. Our newest service for ISO ClaimSearch® users, ISO ClaimAlert™: Foreclosure can help.

According to ISO data, the average homeowners claim in 2010 was $8,203, and data in ISO ClaimAlert: Foreclosure indicates that as many as 2 percent of property claims involve a foreclosure. The property/casualty industry’s annual exposure could be as high as $10 billion.

ISO ClaimAlert: Foreclosure can help your adjusters protect your capital from that exposure. This new tool scans your property claims as you submit them to ISO ClaimSearch. The system matches claims to a database of properties in one of the five stages of foreclosure. Your adjusters will know whether foreclosure is an issue, equipping them to take swift, informed action. ISO ClaimAlert: Foreclosure can prompt a closer evaluation of a claim or even a referral to SIU. And it doesn’t require any additional IT configuration or integration investment.

Give your adjusters the tools they need to lower your expenses and identify more suspicious activity without increasing overhead. Add ISO ClaimAlert: Foreclosure to your ISO ClaimSearch platform, and take a step toward solving a multibillion-dollar problem.


Brian Panebianco

Brian Panebianco is responsible for the research and implementation of innovative ideas to enhance and expand ISO ClaimSearch, the property/casualty insurance industry’s largest all-claims database.


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