Our Insurance Risk evaluations review the borrower’s existing coverages and limits against the industry standards, GSE seller/servicer requirements and rating agency criteria including:
Insurance Carrier Financial Strength
Special cause of loss form (“all risk”)
Lender as additional insured & notification of cancellation provision
Flood (zone determination & coverage compliance)
Windstorm
Earthquake (seismic zone 3 & 4)
Environmental/ Pollution Liability (Post Phase I and/or Phase II Environmental Site Assessment review)
Boiler & Machinery Business Income/ Extra Expense (loss of rents)
Casualty Coverage Review: commercial general liability, umbrella, and workers compensation compliance.
Terrorism
Verification of Premium Payment
If necessary, we work directly with the borrower and/or their insurance broker to broaden coverages or limits to acceptable levels prior to closing.
Upon completion of our due diligence review, we provide the lender a detailed summary of insurance and copies of pertinent insurance documents collected during our review including binders, copies of insurance policies, and endorsements.
