Special Report: Flood, Hazard & Disaster.(the insurance industry in times of disaster)(Brief Article)

It has been a relatively mild spring so far. The usual stories of April flooding have been largely supplanted by worries about a summer drought. But one of the legacies of Sept. 11 is that we don't take things for granted the way we once did. The mortgage industry, just like every other industry in America, is paying more attention to insurance coverage and disaster recovery than ever before. And with insurance costs rising, making sure insurance is in place has become more challenging.

And that is good news. Nobody wants to have to explain how a natural disaster has diminished the value of their mortgage portfolio to senior management of a parent company. Nor should individual traumas, like a house fire, put homeowners and their lenders in a financial hole. Insurance is the cornerstone of recovery from any disaster.

The vendors that supply insurance services to the industry have responded with a variety of innovative products and technology to help lenders ensure that their mortgagees are protected against ...