501.02G
Regional Perils Insurance
Requirements
If a PropertyPropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). is in an area prone to geological phenomena, the property insurance coverage must include those phenomena.
The coverage amount must be 100% of the insurable value.
Guidance
Examples of geological phenomena include sinkhole, mine subsidence, volcanic eruption, and avalanche.