Balancing Higher Deductibles and Lender Requirements: Strategies for Real Estate and Property Management
For real estate and property management clients, balancing the cost-saving benefits of higher insurance deductibles with lender requirements can be challenging. Strategies such as deductible buy down policies, indemnity agreements, and reimbursement policies help insureds reduce premiums while meeting lender expectations. Additionally, effective collateral management, including alternatives like letters of credit and third-party trust arrangements, is critical for clients navigating the increasing costs and evolving requirements of loss-sensitive insurance programs.
Is the California FAIR Plan Enough? Understanding Coverage Limits and Lender Requirements
The California FAIR Plan provides essential property insurance for high-risk areas, offering basic coverage against perils like fire and wind when traditional insurance options are unavailable. However, this limited coverage does not usually meet lender requirements, as it excludes important protections like liability, theft, and water damage. To meet lender standards and achieve comprehensive protection, homeowners using the FAIR Plan often need to add a supplemental policy, such as a Difference in Conditions (DIC) policy, to fill these gaps.
Multifamily Properties Update: Understanding and Mitigating Attractive Nuisances
Attractive nuisances such as swimming pools, playgrounds, and trampolines can increase liability if not managed properly. Property owners must take steps to mitigate risks by installing secure fencing, conducting regular maintenance, enforcing supervision requirements, and ensuring safety protocols are followed.
