CC_S_205.2 Types of Commercial/Multifamily Insurance
A borrower's company, organization, partnership, etc., can be very successful and structured in a way that makes the borrower suitable for a commercial/multifamily mortgage deal. However, without the proper insurance coverage, unforeseen losses can seriously impact the property value and lender investment. Therefore, the loan documents require that the borrower maintain standard and more specific insurance coverage based on the nature of the business, location, and property type tied to the security. The servicer is responsible for determining whether the insurance coverage in place is in compliance with the requirements set by the lender. Additionally, the servicer is responsible for maintaining certain required corporate coverage.
Types of CMF Insurance explores insurance coverage requirements. It begins with a look at how coverage requirements are presented in the loan documents, servicing agreements, agency guidelines, and best practice standards. The course then delves into the various types of property and liability insurance and their related coverage requirements, including fire, hazard, loss of rents, business interruption, equipment breakdown, catastrophic events, mold, environmental issues, difference in conditions, and builder’s risk. Finally, the course explores the documentation that servicers use in obtaining evidence of proof of coverage.
This is a commercial/multifamily course.
Seat time approximately 2 hours.