Warren Buffett's Berkshire Hathaway Inc. is adding sales of insurance coverage on foreclosed homes and properties occupied by distressed borrowers to make money from banks burned by the mortgage market's collapse.

Berkshire is following Munich Re, the world's biggest reinsurer, and QBE Insurance Group Ltd. of Australia in targeting one of the few expanding U.S. insurance markets. The policies are riskier than typical home coverage because the properties are more prone to neglect or vandalism.

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