Named Storm Insurance

Requirements

You must ensure:

• the Property PropertyMultifamily 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 Event Catastrophic 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
  • Property PropertyMultifamily 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 Tier TierTier 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 Value Total 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 Policy Blanket 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 Borrower BorrowerPerson 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 NFIP NFIPProgram 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; 
• the deductible does not exceed the greater of:
  • 7.5% of the subject collateral's Total Insurable Value Total 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. ; or
  • the applicable maximum amount per  Part II, Chapter 5: Property and Liability Insurance, Section 501.02B: Deductibles ; and
• for business income insurance, the waiting period does not exceed:
  • when expressed as a number of days, 15 days; or
  • when expressed as a dollar amount, $100,000.