I have a poll question here. We are trying to get an indea of what other Banks are doing concerning insurance tracking for commercial loans. Is there a dollar amount at which you stop tracking insurance for a customer? Currently, if a loan pays below $50,000, we stop tracking insurance coverage. Many feel this is too low, and we were hoping to find out what other banks are doing. Thanks for your help.

Our cutoff is $25k. We do not track insurance on any new loan or once a loan has paid down under $25k.

Can you let me know what size Bank you are as well. Not sure if that matters, but I'm curious. Thanks

$475 million. 7 branches.

Our cutoff (it's in our loan policy) is $3k for any loan commercial or consumer not cash secured. We have 7 branches and are $121 million in assets.

I guess its all in how much risk you are willing to take; how much risk you are willing to let your customer take? We have a few that we are willing to have a higher threshold for potential loss, based on the strength of the borrower - but that is rare for us.

You should be familiar with what your blanket policy covers before deciding what to track or not track.

For example, if your blanket policy covers commercial real estate up to $1,000,000 with certain requirements (probably that the loan documents must require insurance and proof of coverage with bank listed as mortgagee prior to closing), then there is no reason to track insurance on those loans.

Thanks everyone for your feedback. I will have to look into our Bank's insurance coverage.