Are they suggesting that they need 100% RC cost on dwelling or they just mean its RC and not ACV?
God the banks are so confusing. Some banks accept my travelers ho6 without a question and some banks want replacement cost and 20% of appraised value etc...
Its actually new guidance (from December last year, I think) that government backed loans on condos have to have walls in coverage. They worded it wrong though.
They simply want to make sure that there is sufficient coverage to rebuild if something happens.
My solution to this has always been to add some building property coverage to the policy, even if the master policy is walls-in. This provides coverage for the homeowner and usually keeps the bank happy.
Now, the 20% they want is usually of the loan amount, which we all know is irrelevant, but what I tell clients is just do it for now, we'll fix it after the loan closes. Only once did I have a bank come back and ask later about changes, and they were fine once I explained it to them.
the banks here are so stubborn sometimes, a different case, but the bank loan officer would not accept my binder and paid invoice as proof of insurance, she said she MUST have a dec page or they will never move into closing date.
for the 20% i know they want it to cover that, but now they want me to put replacement cost for that, but all my carriers tell me they dont have a market for RC endorsement because insured doesnt own the whole building.
I usually just have the coverage for betterments and etc. match 20% of the loan. That makes the banks happy and if the client ever modifies things then they are still doing okay for the insurance. Replacement cost for that is added on no problem.
I love Kemper for the condos, or any company that offers blanket property limits. Then you have the 20% EASILY and the client is able to use the coverages better during a loss like for contents or loss of use.
She lectures me about how shes been doing it for 20 years and they always request dec pages with policy numbers before they move into closing.
i wanted to say well i think you've been doing it wrong. I ended up calling the client and tell him the bank wants to lock him into the effective date for dec page or they wont give him a closing date.
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I usually just have the coverage for betterments and etc. match 20% of the loan. That makes the banks happy and if the client ever modifies things then they are still doing okay for the insurance. Replacement cost for that is added on no problem.
I love Kemper for the condos, or any company that offers blanket property limits. Then you have the 20% EASILY and the client is able to use the coverages better during a loss like for contents or loss of use.
