Insurance Questions FAQ

The terms of your loan require you to maintain property insurance on the property securing your loan. This covers physical damage or hazard.

You’re also responsible for providing proof of the required insurance to ditech. You have the option to purchase this insurance through an insurer or agent of your choice that is authorized to transact business in your state.

If your property is located in an area designated by FEMA (Federal Emergency Management Agency) as a SFHA (Special Flood Hazard Area), you are required to have flood insurance coverage. Proof of continuous flood insurance coverage must be supplied to ditech.

Depending on your loan type, if you don’t provide us with proof of suitable insurance coverage, ditech may obtain an insurance policy on your behalf (lender-placed insurance) pursuant to state guidelines.

This coverage is generally basic coverage that provides insurance protection only to the lender for the amount of the loan balance (minus any financed insurance, points and land). You’ll be responsible for paying the monthly premiums on lender-placed insurance coverage. Note that this coverage is often more expensive than regular insurance coverage you can obtain on your own.

Learn more on our Understanding Lender-Placed Insurance page in the Mortgage Topics in Depth section.

Lender-placed insurance is issued only when we have no record of other insurance coverage and is effective only for the lapse period. Upon receiving evidence of in-force insurance that covers the lapse, the lender-placed policy can be fully or partially cancelled based on the effective dates of the coverage provided.

Learn more on our Understanding Lender-Placed Insurance page.

There are several reasons why ditech needs to be listed as the loss payee. At each policy renewal, your insurance company will send a copy of your policy declarations page to the loss payee (ditech) so that we have evidence of your homeowners insurance coverage. In the event that you suffer a loss to your property, the insurance company needs this information to ensure timely processing.

Additionally, for loans where ditech is responsible for paying the annual premium out of an escrow account, accurate loss payee information ensures timely billing and payment to avoid cancellation. Please have your agent or insurance company make sure ditech is listed as loss payee on your insurance policies.

The proper way to designate ditech as the Loss Payee:

Manufactured Housing
Ditech Financial LLC*
Its affiliates and/or assigns
PO Box 979282
Miami, FL 33197-9282

Home Equity
Ditech Financial LLC*
Its affiliates and/or assigns
PO Box 979282
Miami, FL 33197-9282

Any insurance policy that you purchase to protect your property from damage (wind, fire, flood, etc.), must list Ditech as a beneficiary on the policy, since we are the servicer of your mortgage loan. The “mortgagee clause” is the format of the information used to reflect Ditech as a beneficiary on the policy.

Please advise your agent that the “mortgagee clause” should read EXACTLY as shown below. NOTE: Any insurance policy that contains a “mortgagee clause” that is different in any way from what is noted below will not be accepted.

P.O. BOX 979282
MIAMI, FL 33197-9282