Portfolio Program – Condominium Project Insurance Checklist

Fill In And “X” Mark The Appropriate Areas

Loan Number: / Name:
Project Name:
Hazard Insurance
All units and common elements insured in the association’s name for 100% of their insurable replacement cost. (An insurance policy that include either a Guaranteed Replacement Cost Endorsement or Replacement Cost Endorsement)
Deductible does not exceed 5% of the policy face amount
·  Borrower has HO-6 “Wall-In” policy with coverage sufficient to repair the condo unit to its condition prior to a loss claim event, as determined by the insurer, or
·  A letter from the master policy insurer confirms that this coverage is part of the master policy
Liability Insurance
Minimum of $1 million per occurrence for bodily injury or property damage that happen on the common elements of the condominium project.
The policy includes “severability of interest” in its terms, if not, a specific endorsement to preclude the insurer’s denial of a unit owner’s claim because of negligent acts of the HOA or other unit owners is required.
Not required for Type E PUD or limited Project Review
Flood Insurance (Required If Any Portion Of Project’s Improvements Are Located In A Special Flood Hazard Area)
Coverage must equal
·  Lesser of 100% of insurable value or maximum allowed per National Flood Insurance Program (NFIP)
·  For each unit, the lesser of $250,000 or the amount of its replacement cost
Deductible not to exceed $25,000 per building located in the flood zone.
If subject project is a high-rise, the requirements noted in Broker Glance – Mortgage Insurance for Flood Insurace have been met.
Fidelity Insurance
Required for projects with 20 or more units
Not required if performing a Limited Project Review
Coverage must equal at least 3 months of assessment on all the units in the project (a higher amount is required if certain financial controls are not in place – refer to Broker Glance – Mortgage Insurance for Fidelity Insurance.)
I certify that the
project meets the Insurance Requirements above.
Signed: / Date:
Print Name: / Title:
If any of information was obtained verbally, provide the following information regarding the person(s) spoken to:
Name: / Title:
Company: / Phone #:

RLU-frm Portfolio Program Project Ins Checklist 07/08/2013