AXA XL has added new coverages to its pollution and remediation liability insurance for lenders, further protecting them from losses in the event of a loan default.
The Protective Environmental Asset Coverage Enhancement (PEACE) endorsement, which can be added to AXA XL’s flagship Pollution and Remediation Legal Liability (PARLL) policy, is specifically designed to provide lenders with an added layer of protection against security risks arising from pollution conditions at a covered location.
It pays for a mortgage impairment loss as a result of a pollution condition on, at, under or migrating from a covered location provided that a loan default has occurred during the policy period.
The new PEACE endorsement adds additional coverages, including:
- lender coverage for the lesser of the loan balance or clean-up cost in the event of a loan default;
- business Interruption in relation to a pollution condition after a foreclosure;
- bodily injury and property damage before a default scenario;
- non-owned disposal sites and contingent transportation coverage;
- remediation expense after a foreclosure;
- emergency remediation expense after a foreclosure; and
- diminution in value after a foreclosure
SOURCE: AXA XL
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