Real Estate Finance: Evaluating Property Insurance Under Current Lender Standards
Determining Replacement Cost, Business Interruption, Flood, Windstorm, Earthquake, Ordinance and Law, and Terrorism Coverage
Recording of a 90-minute CLE webinar with Q&A
This CLE webinar will provide real estate counsel with an understanding of the various components of property insurance and the current requirements of lenders with regard to 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.
- Discussion of standard and optional coverages included in property insurance policies
- Replacement cost
- Business interruption
- Ordinance and law
- Boiler and machinery
- How third-party due diligence affects the foregoing 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 with regard to deal-specific insurance provisions
- Insurance carrier ratings—lender requirements
The panel will review these and other key issues:
- What types of coverage are currently required 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 therefrom) reflected in the loan documents?
Michael J. Bordy
Michael J. Bordy, A.P.L.C.
Mr. Bordy is a transactional attorney who has 26 years of experience handling a variety of issues in business,... | Read More
Mr. Bordy is a transactional attorney who has 26 years of experience handling a variety of issues in business, corporate law and real estate. He regularly advises clients on real estate finance and leasing. His expertise encompasses real estate contracts, property rights, commercial property transactions, eminent domain, zoning, land-use and building permits, and negotiating real estate agreements.Close
Alexandra Hayden, Esq.
Harbor Group Consulting
Ms. Hayden serves as Transaction Counsel, conducting insurance risk analysis on transactions ranging in size from... | Read More
Ms. Hayden serves as Transaction Counsel, conducting insurance risk analysis on transactions ranging in size from $2 million to over $600 million on behalf of lending clients. Prior to joining her firm, she practiced law with a firm that specialized in commercial real estate transactions. She worked with the lending group representing banks in the drafting and negotiation of the loan documents for commercial properties.Close
Chief Operating Officer
Harbor Group Consulting
Mrs. Komisarjevsky is responsible for the management oversight of the firm’s large loan transactions, including... | Read More
Mrs. Komisarjevsky is responsible for the management oversight of the firm’s large loan transactions, including balance sheet, syndication and CMBS loans. As Head of CMBS, she is responsible for managing, negotiating and closing CMBS transactions for the firm, including all stand-alone securitizations. She has overseen transactions totaling more than $500B, including many of the largest and most noteworthy. She also consulted on the first financing completed by the Federal Reserve utilizing the TALF program. She is called upon for speaking engagements, insurance seminars and contribution to publications and internal presentations of many prominent law firms.Close
Kevin D. Smith, CPCU, ARM
The Graham Company
Mr. Smith is the leader of his firm's Real Estate Division and the International Division. He also manages the... | Read More
Mr. Smith is the leader of his firm's Real Estate Division and the International Division. He also manages the firm’s Group Captive and is an active member of the Risk Management Division. He spearheads his firm’s involvement in several real estate industry organizations. He presents and is a published author on key issues in the risk management industry, including but not limited to captive insurance, international insurance issues, contractual risk transfer and real estate portfolio insurance programs.Close