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4350.1 REV1 CHAPTER 21. INSURANCE AND LOSS DRAFTSSECTION 1. INTRODUCTION211. General HUD regulation 24 CFR 207.10 requires thatHUDinsured mortgages contain a covenant (acceptable to HUD) binding the
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Insurance and loss drafts are documents that are used to process claims for damages or losses covered by an insurance policy.
The policyholder or the insured party is typically required to file insurance and loss drafts.
Insurance and loss drafts should be filled out with accurate information regarding the details of the claim, including the date and nature of the loss, the amount of damages, and any supporting documentation.
The purpose of insurance and loss drafts is to facilitate the processing of claims for insurance coverage, ensuring that policyholders receive the financial assistance they are entitled to in the event of a covered loss.
Information such as the policy number, the insured party's contact information, the date and cause of the loss, the estimated amount of damages, and any relevant documentation must be reported on insurance and loss drafts.
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