Description of Insurance Policies

Description of Insurance Policies Exhibit III-11

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:
1.  100% Replacement Cost
2.  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):
Policy Number: / Rating: (minimum A- VI) / Expiration Date:
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:
Policy Number(s):
Excess carrier:
Policy Number(s): / Rating: (minimum A- VI) / Expiration Date:
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):
Policy Number: / Rating: (minimum A- VI) / Expiration Date:
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):
Policy Number: / Rating: (minimum A- VI) / Expiration Date:
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:
Policy Number: / Rating: (minimum A- VI) / Expiration Date:
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:
Policy Number: / Rating: (minimum A- VI) / Expiration Date:
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):
Policy Number: / Rating: (minimum A- VI) / Expiration Date:

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):
Policy Number: / Rating: (minimum A- VI) / Expiration Date:
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):
Policy Number: / Rating: (minimum A- VI) / Expiration Date:
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):
Policy Number: / Rating: (minimum A VI) / Expiration Date:

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: ______

Page 1 Fannie Mae DUS Guide

12/4/06