Named Storm Insurance

Requirements

You must ensure:

• the PropertyPropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). has separate named storm insurance if the:
  • Special Peril Coverage of Loss Form excludes any type of wind-related Catastrophic EventCatastrophic EventNatural or man-made hazard resulting in an event of substantial extent causing significant physical damage or destruction, loss of life, or drastic change to the natural environment, such as earthquake, flood, terrorist attack, or windstorm. ; and
  • 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 located in a TierTierTier 1, Tier 2, Tier 3, or Tier 4 per the Multifamily Underwriting Standards (Form 4660). I named storm county, as defined by the insurer;
• the coverage equals at least 90% of the Total Insurable ValueTotal Insurable ValueFor any Property, the sum of the full value of the insured's: covered Property; Property-related business income values; and any other covered Property interests.
  • on a standalone policy, and
  • of the largest individual property on a Blanket PolicyBlanket PolicyInsurance policy providing coverage for multiple properties and/or multiple perils. ;
• if the named storm policy does not cover costs due to flooding from storm surge, the BorrowerBorrowerPerson who is the obligor per the Note. maintains flood insurance for any buildings located in the 500-year flood zone equal to the maximum coverage available through NFIPNFIPProgram of flood insurance coverage and floodplain management administered under the National Flood Insurance Act. policies or their equivalent;
• the valuation does not rely solely on Probable Maximum Loss (PML) calculations; and
• the deductible does not exceed the greatest of:
  • 7.5% of the Insurable ValueInsurable ValueFor any Property, the estimate of the maximum dollar amount needed to replace, repair, or reproduce the Property, but excluding any land value. ;
  • the applicable maximum amount per Part II, Chapter 5: Property and Liability Insurance, Section 501.02B: Deductibles; and
  • for business income insurance:
    • when expressed as a number of days, 15 days; or
    • when expressed as a dollar amount, $100,000.