When insuring leased business personal property, be certain the property leases specifically require the lessee to
insure the equipment.
The industry recognized the concern and created the Mortgage Tax Endorsement, which insures a lender against loss in the event that all required mortgage recording taxes are not paid.
Limited to Lender's policies for residential properties, categorized as four families or less, this endorsement insures against loss by reason of any violations, variations, encroachments, or adverse circumstances that would have been disclosed by an accurate survey.
b)
insures physical loss or damage caused by or resulting from:
This result was to be expected because the FHA generally
insures the mortgages of borrowers who currently have few assets available for down payments and closing costs and who do not usually qualify for a mortgage with PMI.
By law, HUD cannot
insure a reverse mortgage above the local FHA loan limit.
The owner of the $200,000 building wants to
insure himself in full, so he buys a policy for $200,000 and pays a premium of $1,000 (.50 per $100 x $200,000).
