Evaluating Property Insurance in Real Estate Finance Transactions
Replacement Cost, Business Interruption, Flood, Windstorm, Earthquake, Ordinance and Law, Terrorism Coverage
Recording of a 90-minute premium CLE video webinar with Q&A
This CLE course will provide real estate counsel with an understanding of the various components of property insurance and the current requirements of lenders concerning each type of coverage. The panel discussion will include replacement cost, business interruption, ordinance and law, flood, windstorm, earthquake, and terrorism coverage; when each coverage is required; and how coverage amounts are determined.
Outline
- Discussion of standard and optional coverages included in property insurance policies
- Replacement cost
- Business interruption
- Ordinance and law
- Terrorism
- Flood
- Windstorm
- Earthquake
- Boiler and machinery
- How third-party due diligence affects coverage
- Appraisal: breakdown of property value and income calculations
- Survey: flood zones, zoning designation, and related information
- Title: appurtenant easements and other issues
- Zoning: conforming vs. legal non-conforming
- Engineering report: earthquake zones
- Drafting tips for deal-specific insurance provisions
- Additional insured and other endorsements critical to the lender
- Insurance carrier ratings: lender requirements
Benefits
The panel will review these and other key issues:
- What are the currently required coverages in real estate finance transactions?
- What information is needed from appraisal, survey, title, zoning, and engineering reports to finalize coverage?
- How are coverage parameters determined?
- What are the current rating requirements for insurance carriers, and what do the parties do when the existing carrier is not approved?
- How are insurance requirements (and deviations) reflected in the loan documents?
Faculty
Alexandra Hayden, Esq.
Director, Legal Specialist
Harbor Group Consulting
Ms. Hayden joined the firm in 2014 and serves as a Director, Legal Specialist in the Commercial Real Estate Practice.... | Read More
Ms. Hayden joined the firm in 2014 and serves as a Director, Legal Specialist in the Commercial Real Estate Practice. She conducts insurance risk analysis on transactions ranging in size from $2 million to over $600 million on behalf of lending clients, including Allianz, Basis, Benefit Street, Goldman Sachs, JPMorgan Chase, and Deutsche Bank. Prior to Harbor Group, she spent over 5 years as an Associate at a law firm that specialized in commercial real estate transactions. During her tenure, she worked with the lending group representing banks in the drafting and negotiation of the loan documents for commercial properties and managed deals through the closing process.
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Kevin D. Smith, CPCU, ARM
Managing Director
The Graham Company
Mr. Smith joined The Graham Company in 1999 and is a Managing Director currently responsible for the firm’s... | Read More
Mr. Smith joined The Graham Company in 1999 and is a Managing Director currently responsible for the firm’s expansion into the Washington DC Metro Region. In that capacity, he manages the production staff and new business growth in the region. He is also the leader of the Real Estate Industry Team and manages the firm’s Group Captive. In 2009, he was appointed to The Graham Company’s Management Committee and is a member of the ESOP Plan Committee.
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