INSURANCE CLAIMS PACKET

PO Box 3000 Merrifield, VA 22119-3000

Dear Member:

Navy Federal Credit Union wants to make your insurance claim process as easy as possible. Below are the steps you’ll need to complete to help speed the repairs to your property. We’ve included the necessary forms and a Frequently Asked Questions brochure to help guide you through your process. Please carefully evaluate all the forms included with this letter, so you’ll know what forms you need to sign and return to Navy Federal.

1. Sign and return the enclosed affidavit.

A signed affidavit is required to complete the processing of your insurance claim. Both the borrower and the co-borrower (if applicable) must sign the affidavit, as well as all other payees (if applicable). In some cases, where noted, the contractor performing the repairs on your property will be required to sign a Contractor Affidavit if the claim check is issued with the contractor’s name.

Please mail, email or fax the signed affidavit to the Navy Federal Insurance Claims Specialist within 7 to 10 business days of receiving this letter. Be sure to retain a copy for your records. For your convenience, you may also bring any documents regarding your claim to your local Navy Federal Credit Union branch office.

Overnight Address: Navy Federal Credit Union ATTN: Mortgage Insurance Claims Department 820 Follin Lane SE Vienna, VA 22180

Mailing Address: Navy Federal Credit Union ATTN: Mortgage Insurance Claims Department PO Box 3304 Merrifield, VA 22119-3304 Ph: (888) 842-6328 Fax: (703) 206-3865

Email: insurance_claims@navyfederal.org

2. Endorse your insurance claim check and send the Scope of Loss documents (provided by your insurance company) and repair documents to Navy Federal.

Please note that any check you receive from your insurance company to cover the damage to your property will be made payable to both the property owner(s) and Navy Federal. Therefore, Navy Federal must also endorse the check before it can be cashed.

Once you receive a check from your insurance company, endorse the back immediately and mail it to your Navy Federal Insurance Claims Specialist, or take the check to your local Navy Federal branch office. You must also bring in, mail, fax or email a copy of the Scope of Loss document from your insurance company and the repair contract. If the repair contract is not immediately available to you, please forward the contract to Navy Federal as soon as you receive it.

Navy Federal Credit Union ATTN: Mortgage Insurance Claims Department PO Box 3304 Merrifield, VA 22119-3304 Fax: (703) 206-3865

PO Box 3000 Merrifield, VA 22119-3000

3. Perform repairs.

Navy Federal recommends using a licensed contractor when performing repairs. Repairs should be completed within a timely manner.

If you’re making the repairs yourself, only the cost of the materials will be reimbursed. No labor costs will be calculated. However, all remaining funds will be released to you when the repairs are 100% complete. You also have the option to apply the remaining funds to the principal mortgage balance.

4. Call your Navy Federal Insurance Claims Specialist when all repairs have been completed.

After you have contacted us regarding the completion of your repairs, your Insurance Claims Specialist will order a final inspection of the repaired damage from Safeguard Properties. Safeguard will contact you within 24 to 48 hours to set up an appointment, at your convenience, and will inspect and document the completed repairs. All costs associated with the inspection will be paid by Navy Federal. You’ll be contacted when the inspection report indicates that repairs have been completed. The insurance claim will be closed by Navy Federal Credit Union. If applicable, any remaining funds in escrow (including earned interest) will be sent to you by mail after the claim is closed.

If you have any questions about the Insurance Claims process, please contact your Navy Federal Insurance Claims Specialist or call 1-888-842-6328.

We’re happy to help you through this process and are here to answer any of your questions. We look forward to hearing from you.

Thank you for being a loyal Navy Federal member.

Sincerely,

Navy Federal Credit Union Mortgage Insurance Claims Department

Federally insured by NCUA. © 2014 Navy Federal NFCU 1998-L (10-14)

1. Contact your insurance company or agent to file your claim.

2. Do what is needed to prevent further damage to your property.

3. Provide Navy Federal with a copy of the insurance adjuster’s report/ estimate/Scope of Loss.

4. Once you receive the claim check from your insurance company, endorse the back and mail it to your Navy Federal Insurance Claims Specialist, or take it to your local branch.

5. Keep track of all expenses/paid receipts.

6. Once you select a contractor, provide Navy Federal a copy of the signed contractor’s repair contract.

7. Complete the member affidavit and provide your contractor with the contractor affidavit to complete for the amount of the first draw/deposit stated on the contractor’s repair contract. Affidavits will be required for each subsequent draw.

8. Once repairs are completed, please call your Insurance Claims Specialist to set up the final inspection on the repaired damage. At different points during the claims process, Navy Federal may order inspections for a status update of the repairs before additional draws can be authorized.

CLAIMS PROCESS STEPS

© 2014 Navy Federal NFCU 1998-I (10-14)

Question: This is the first time I’ve filed an insurance claim. What should I do?

Answer: Contact your insurance company or agent to file a claim. Do what is needed to prevent further damage to your property.

Question: Why is Navy Federal Credit Union a payee on my insurance claim check?

Answer: Navy Federal is responsible for ensuring the property is repaired and restored to its original condition according to the terms of your Deed of Trust. At the closing of the mortgage with Navy Federal Credit Union, you are asked to provide a copy of your insurance policy with Navy Federal Credit Union listed as the loss payee on the policy.

Question: What if my insurance company sent me just one check for the damage to my dwelling but also included payment for damage to personal property and/or loss of use coverage within that same check?

Answer: Once the check is deposited into the restricted escrow account, the portion that is identified for personal property damage and/or loss of use coverage will be released to you immediately.

Question: Can I have my claim check deposited at my local member service center?

Answer: Contact the Mortgage and Equity Servicing contact center at 1-888-842-6328 or your Insurance Claims Specialist for guidance regarding your specific claim. You may also email us at insurance_claims@navyfederal.org.

Question: Do I earn a dividend while the repair money is in restricted escrow?

Answer: Yes. You will earn dividends at the same dividend rate as the EveryDay Checking account. This dividend is paid monthly and deposited to the regular escrow account.

Question: How is the repair inspection ordered for my insurance claim and who pays for it?

Answer: After you have contacted us regarding the completion of your repairs, your Insurance Claims Specialist will order a final inspection of the repaired damages from Safeguard Properties. Safeguard will contact you within 24 to 48 hours to set up an appointment, at your convenience, and will inspect and document the completed repairs. All costs associated with the inspection will be paid by Navy Federal. You will be contacted when the inspection report indicates that repairs have been completed. The insurance claim will be closed by Navy Federal Credit Union. If applicable, any remaining funds in escrow (including earned interest) will be sent to you by mail after the claim is closed.

Question: I’ve been asked to provide the Scope of Loss by the contact center. What is it?

Answer: The Scope of Loss is the itemized detail of damages prepared by the insurance adjuster who inspected the damages. It is usually provided with the insurance claim settlement check or online with your claim records at the insurance company.

Question: I’ve been told that I need to sign an affidavit to initiate the release of insurance claim funds in restricted escrow. What is an affidavit?

FREQUENTLY ASKED QUESTIONS AND ANSWERS

Answer: An affidavit certifies that the funds will be used for the repair to your property according to the estimate of loss provided by the insurance company and that a lien will not be placed on the property in connection with the completed repairs.

A signed affidavit(s) is required in order to complete the processing of your insurance claim. Both the borrower and the co-borrower (if applicable), as well as all other payees, must sign the affidavit. In some cases, where noted, the contractor performing the repairs on your property will be required to sign a contractor affidavit if the claim check is issued with the contractor’s name.

Question: My insurance claim is sizable and will have numerous checks issued. Can I just sign one affidavit for all the releases?

Answer: No. All claim withdrawal checks are processed through your restricted escrow account. Since your withdrawals from this account will vary depending on your repair contract and the repairs completed thus far, each member/contractor affidavit must reflect the exact amount of the withdrawal.

Question: How long do I have to complete repairs?

Answer: Repairs should be initiated as soon as possible. Completion may be determined based on the Scope of Loss, which is provided by your insurance company. Depending on severity of the damage, some repairs can take up to a year.

Question: Do I need to hire a licensed contractor to do the repairs?

Answer: Navy Federal recommends that you select a financially viable, licensed and qualified contractor to complete the necessary property repairs. This protects both your interest and that of Navy Federal Credit Union.

Question: Can I pay off my mortgage with the insurance claim check?

Answer: Yes. You can pay off your mortgage with the insurance claim check if there are sufficient funds to pay all outstanding mortgage loans for the damaged property. Please provide a written request to use the funds to pay off the mortgage loan.

Question: I do not have any more postage-paid envelopes. Can you provide the regular mailing address?

Answer: Navy Federal Credit Union Attn: Mortgage Insurance Claims Department PO Box 3304 Merrifield, VA 22119-3304

Question: Can I federal express the claim package to you?

Answer: Yes. Please address the package to: Navy Federal Credit Union Attn: Mortgage Insurance Claims Department 820 Follin Lane SE Vienna, VA 22180

Question: What is the fax number and/or email address for the insurance claims department?

Answer: Our fax number is 703-206-3865. Our email address is insurance_claims@navyfederal.org. Please be sure to address the necessary documents to the Insurance Claims Department Specialist.

Federally insured by NCUA. © 2014 Navy Federal NFCU 1998-FAQ (10-14)

Member Affidavit

Federally insured by NCUA.© 2014 Navy Federal NFCU 26A (10-14) PO Box 3000 Merrifield, VA 22119-3000

I/We acknowledge that the release of the insurance claim funds listed above will be forwarded to me/us once Navy Federal has received this signed affidavit. I/We certify that these funds will be used for the repair of the above-referenced property according to the estimate of loss provided by the insurance company, and a materialman’s and/or mechanic’s lien will not be placed on the above-referenced property in connection with the completed repairs.

Upon receipt of this affidavit, please sign and return it to expedite the release of the claim funds.

Borrower’s Name Borrower’s Signature Date

MEMBER NAME: ______________________________________________________________________

LOAN #: ______________________________________________________________________________

PROPERTY ADDRESS: _________________________________________________________________

CITY, STATE, ZIP: _____________________________________________________________________

INSURANCE CLAIM AMOUNT: $ ________________________________________________________

Co-Borrower’s Name Co-Borrower’s Signature Date

Contractor Affidavit

Federally insured by NCUA.© 2014 Navy Federal NFCU 26B (10-14) PO Box 3000 Merrifield, VA 22119-3000

I acknowledge that the insurance claim funds listed above will be released once Navy Federal has received this signed affidavit. I certify that these funds will be used for the repair of the above-referenced property according to the estimate of loss provided by the insurance company, and a materialman’s and/or mechanic’s lien will not be placed on the above-referenced property in connection with the completed repairs.

Upon receipt of this affidavit, please sign and return it to expedite the release of the claim funds.

Authorized Representative Name Authorized Representative Signature Date

MEMBER NAME: ______________________________________________________________________

LOAN #: ______________________________________________________________________________

PROPERTY ADDRESS: _________________________________________________________________

CITY, STATE, ZIP: _____________________________________________________________________

INSURANCE CLAIM AMOUNT: $ ________________________________________________________

Contractor Company of Authorized Representative

Federally insured by NCUA. © 2014 Navy Federal NFCU 1998-PK (9-14)