Primary Insured:
At least one of the borrower’s names must be listed as the primary insured. It’s acceptable if not all borrowers or title holders are listed as insured. If your loan is in an Entity, please have your LLC name and personal name listed as insured.
Property Address:
The insurance policy must specify the property address, including the house number, street, and ZIP code. This should match the details on your loan application, appraisal, and title policy.
Policy Details:
Please provide the policy’s inception and expiration dates, annual premium, and contact information for the insurance carrier and agent. Your inception date will be your closing date.
Mortgagee/Loss Payable Clause:
Traditional Mortgage Loans
Your Loan Officer and/or Loan Processor will provide you this information once you have determined the Insurance Agent and/or Insurance Policy you are ready to move forward with. Please provide them with a copy of the Quote you are moving forward with or the Insurance Agent direct contact information.
Proof of Payment:
Flood Insurance is the only type of insurance that is required to be paid in full before closing.
Please do not pay other insurance policies before closing and kindly send us the invoice for payment to be collected at closing by the Title Company.
Some insurance companies may ask for one month’s insurance payment in advance as a good faith deposit and they will invoice the remaining amount to be paid at closing. This is okay to do if you chose to.
Coverage Requirements:
The coverage amount must be equal to the lesser of 1) the loan amount or 2) the replacement cost/insurable value of the property.
If utilizing the replacement cost, ensure that you have the Replacement Cost Estimate provided as well.
Replacement Cost Coverage:
Replacement cost must be documented at 100% of the replacement cost value of the project including common elements. Policies that settle at cash value, limit, or depreciate are not acceptable. Guaranteed or full replacement cost verbiage is NOT acceptable to document replacement cost value.
It is acceptable for a policy to have coinsurance, but the policy must cover 100% of the replacement cost.
Flood Insurance:
Click here FEMA Flood Maps to find out if your home is in a Flood Zone as Flood insurance is mandatory for properties located in flood zones.
Deductible:
The homeowner’s policy deductible should not exceed 5% of the dwelling coverage.
By meeting these requirements, you’re not only protecting your home but also streamlining the closing process. If you have any questions or need further clarification, feel free to reach out. We’re here to help every step of the way!
Respectfully,
Your Blink Lending & Investments Loan Fulfillment Team
