Short answer: before your loan funds, the lender needs proof of property insurance that meets its requirements, usually an insurance binder or evidence of property insurance sent straight to escrow. Most delays come from three things: the wrong mortgagee clause, coverage below replacement cost, and missing loss of rents on rentals.
See real estate investor insurance or call 888-391-5981.
The lender checklist
- Named insured matches how title is held, for example your LLC.
- Mortgagee clause has the lender’s exact name, “ISAOA/ATIMA” wording, address and loan number.
- Dwelling or building limit at estimated replacement cost, not the purchase price.
- Deductible within the lender’s maximum.
- Loss of rents (fair rental value) for rental properties, often 6 to 12 months.
- Liability limits the lender requires, often $1 million for commercial loans.
- Policy term starting on or before the closing date.
What we need from you
The property address, year built, square footage, number of units, roof age, any updates to plumbing, electrical and roof, the closing date, and the lender’s insurance requirements or mortgagee clause. With that, most binders go to escrow within a day or two.
Brush areas and hard-to-insure properties
Many standard carriers have pulled back in California wildfire areas. We work with specialty markets and with the California FAIR Plan plus a difference-in-conditions (DIC) policy when needed, so your closing isn’t held up.
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Frequently asked questions
What is ISAOA/ATIMA?
It stands for “its successors and/or assigns, as their interests may appear.” Lenders require it so coverage follows the loan if it is sold.
Can you send the binder directly to escrow?
Yes. Give us your escrow officer’s email and we’ll send the binder and invoice directly.
What if my property is in a wildfire area?
We’ll look at specialty carriers and the California FAIR Plan with a DIC policy to meet the lender’s requirements.