Description of Insurance Policies



DESCRIPTION OF INSURANCE POLICIES

Fannie Mae Multifamily Delegated Underwriting

and Servicing Product Line

Date:      

Lender:      

Borrower:      

Fannie Mae Commitment No.:      

Current Loan Principal Amount:      

Subject Property:      

Project Name:      

Street Address:      

City:       State:       Zip Code:      

A. General Requirements

|General Requirements: | |

|Policy Term - 1 year or added to existing policy | | | |

|30-Day Notice of Cancellation, 10 days non-payment | | | |

|Lender Interest: | |

|Mortgagee Clause | | | |

|Lenders Loss Payee | | | |

|Additional Insured | | | |

B. Property Damage Insurance

| Property Insurance |

|Carrier: |Policy Number: |

|Rating: (minimum A- VI) |Expiration Date: |

|Coverage Amount: | |

| |Yes |No |Comments |

|Blanket Policy | | | |

|Special Form | | | |

|100% Replacement Cost | | | |

|No Coinsurance or Agreed Amount | | | |

|Deductible: |

|$25,000 – Up to $100 million total replacement values, as listed on the | | | |

|policy | | | |

|$100,000 - Over $100 million total replacement values, as listed on the | | | |

|policy | | | |

|Blanket Policy - Maximum 1% of total replacement values, no more than | | | |

|$250,000 | | | |

|Policy Amount: |

|100% Replacement Cost | | | |

|Amount Specified in the Agreed Value Clause | | | |

|Exclusions: | |

|Wind/Hail | | | |

|Terrorism | | | |

|Mold | | | |

|Other | | | |

C. Additional Coverage

|Additional Coverage |

| |Yes |No |Comments |

|Business Income | |

|12 Months’ gross-income/rents or actual loss sustained | | | |

|90-day Period of Indemnity (required for loans over $25M) | | | |

|Deductible (maximum 2 weeks per occurrence) | | | |

|Included on Property policy | | | |

|Ordinance and Law | |

|Non-conforming | | | |

|Undamaged portion of the Property (100% of replacement cost) | | | |

|Demolition Cost (minimum 10% total replacement cost) | | | |

|Increased cost of construction (minimum 10% total replacement cost) | | | |

|Included on Property policy | | | |

|Boiler & Machinery/Equipment Breakdown | |

|100% replacement cost of the building(s) that houses equipment | | | |

|Deductible (no more than deductibles on the Property policy) | | | |

|Included on Property policy | | | |

|Coverage Amount | |

|Carrier (if separate policy): |Rating: (minimum A- VI) |Expiration Date: |

| | | |

| | | |

|Policy Number: | | |

|Flood Insurance | |

|100% replacement cost | | | |

|12 Months’ gross income/rents or actual loss sustained | | | |

|90-day Period of Indemnity (required for loans over $25M) | | | |

|Deductible (Flood Policy - maximum 5% of the total insured value or | | | |

|DIC – limit of National Flood Insurance Policy(ies) | | | |

|Total Coverage Amount: | |

| | |

|Primary carrier: |Rating: (minimum A- VI) |Expiration Date: |

| | | |

|Policy Number(s): | | |

| | | |

|Excess carrier: | | |

| | | |

|Policy Number(s): | | |

|Windstorm | |

|100% replacement cost, or ACV equal to UPB | | | |

|Deductible: 10% of the total insured value | | | |

|Included on Property policy | | | |

|12 Months’ gross income/rents or actual loss sustained | | | |

|90-day Period of Indemnity (required for loans over $25M) | | | |

|Coverage Amount | |

|Carrier (if separate policy): |Rating: (minimum A- VI) |Expiration Date: |

| | | |

|Policy Number: | | |

|Earthquake | |

|100% replacement cost | | | |

|12 Months’ gross income/rents or actual loss sustained | | | |

|90-day Period of Indemnity (required for loans over $25M) | | | |

|Deductible: 10% of the total insured value | | | |

|Included on Property policy | | | |

|Coverage Amount | |

|Carrier (if separate policy): |Rating: (minimum A- VI) |Expiration Date: |

| | | |

| | | |

|Policy Number: | | |

|Builder's Risk | |

|100% replacement cost | | | |

|Completed Value Form | | | |

|Deductible: | | | |

|$25,000 – Up to $100 million total replacement values, as listed on the policy | | | |

|$100,000 - Over $100 million total replacement values, as listed on the policy | | | |

|Blanket Policy - Maximum 1% of total replacement values as listed on the policy, no more than | | | |

|$250,000 | | | |

|Coverage Amount | |

|Carrier: |Rating: (minimum A- VI) |Expiration Date: |

| | | |

| | | |

|Policy Number: | | |

|Fidelity Bond/Crime Insurance (Cooperative Corporations only) | |

|Minimum 3 months’ Income | | | |

|Deductible ( maximum. $25,000) | | | |

|Coverage Amount |Policy Number |

|Carrier: |Rating: (minimum A- VI) |Expiration Date: |

|Sinkhole/Mine Subsidence Insurance | |

|100% replacement cost | | | |

|Deductible: | |

|$25,000 – Up to $100 million total replacement values, as listed on the policy | |

|$100,000 - Over $100 million total replacement values, as listed on the policy | |

|Blanket Policy - Maximum 1% of total replacement values as listed on the policy, no more than | |

|$250,000 | |

|Coverage Amount | |

|Carrier: |Rating: (minimum A- VI) |Expiration Date: |

| | | |

| | | |

| | | |

|Policy Number: | | |

|Terrorism Insurance | |

|100% replacement cost | | | |

|Deductible: | | | |

|Stand Alone Policy – maximum 20% of total insured value or Included in Property – no more than | | | |

|Property deductible | | | |

|Included in Property policy | | | |

|Coverage Amount | |

|Carrier (if separate policy): |Rating: (minimum A- VI) |Expiration Date: |

| | | |

| | | |

|Policy Number: | | |

C. Liability Insurance

|Liability Coverage |

| |Yes |No |Comments |

|Commercial General Liability Insurance | |

|Blanket Policy | | | |

|$1 million per occurrence/$2 million aggregate plus: | | | |

|Umbrella liability in addition to the primary (minimums) | |

|Up to 3 stories $1 million | | | |

|4 to 10 stories $5 million | | | |

|11 to 20 stories $10 million | | | |

|Greater than 20 stories $25 million | | | |

|Deductible (maximum $25,000 GL, $10,000 Excess/Umbrella) | | | |

|Same carrier as Property | | | |

|Total Coverage Amount | |

|Carrier (if separate policy from Property): |Rating: (minimum A- VI) |Expiration Date: |

| | | |

|Policy Number: | | |

|Professional Liability Insurance (Seniors properties with Assisted Living or some level of healthcare) |

|Blanket Policy | | | |

|$1 million per occurrence/$2 million aggregate plus: | | | |

|Umbrella liability in addition to the primary (minimums) | | | |

|Up to 100 licensed beds $1 million | | | |

|101 to 500 licensed beds $5 million | | | |

|501 to 1000 licensed beds $10 million | | | |

|Greater than 1000 licensed beds $25 million | | | |

|Deductible (maximum $25,000 GL, $10,000 Excess/Liability) | | | |

|Same carrier as General Liability | | | |

|Total Coverage Amount | |

|Carrier (if separate from General Liability): |Rating: (minimum A- VI) |Expiration Date: |

| | | |

| | | |

|Policy Number: | | |

|Directors & Officer's Liability Insurance (Cooperative Corporations only) | |

|Minimum $1 million per occurrence | | | |

|Deductible (maximum $25,000) | | | |

|Coverage Amount |Policy Number |

|Carrier: |Rating: (minimum A- VI) |Expiration Date: |

|Workers’ Compensation | |

|Statutory Limits for Compensation | | | |

|Employer's Liability limit of min $1 million | | | |

|Coverage Amount |Policy Number |

|Carrier: |Rating: (minimum A- VI) |Expiration Date: |

|Commercial Auto Liability Insurance | |

|$1 million per occurrence | | | |

| Same carrier as General Liability | | | |

|Coverage Amount | |

|Carrier (if separate from General Liability): |Rating: (minimum A VI) |Expiration Date: |

| | | |

| | | |

|Policy Number: | | |

I certify that the above information accurately describes the Insurance now in effect on the subject Property. I further certify that I am an officer of the Lender and am authorized to sign on the Lender's behalf.

(Signature): ______________________________

Name: ______________________________

Date: ______________________________

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