Nationwide Insurance Guide

Renovo requires specific insurance coverages for all financed properties. Use this guide to understand minimum requirements and ensure timely closings.

Instructions

Effective Date 
The effective date of the insurance policy should usually be the close date of the loan. However, it must be no later than the title company disbursement date.

Mortgagee & Lender’s Loss Payable 
Renovo must be listed as both the “Mortgagee” and “Lender’s Loss Payable/Loss Payee” separately:

Loss Payee: RFLF #, LLC, ISAOA/ATIMA, PO BOX 2091, Carmel, IN 46082
Mortgagee: RFLF #, LLC, ISAOA/ATIMA, PO BOX 2091, Carmel, IN 46082

Policy Terms

“Construction Amount”: This should match the total scope of work for the project, whether it’s funded by Renovo, the client, or both.
Replacement Costs (Dwelling Amount):
For properties under construction: Use the lower of the loan amount or 100% of replacement costs on an “as-completed” basis.
For completed properties: Use the lower of the loan amount or 100% of replacement costs on an “as-is” basis.
Bridge Loans
For purchases, the policy must be valid for one year from the date of closing and must be paid in full.
For any occupied properties, there must be at least six months of “Loss of Income” coverage.
Term Loans
Renovo will accept an existing policy if the remaining coverage period is greater than 60 days from closing, and the policy is paid in full.
There must be at least six months of “Loss of Income” coverage.

Flood Zone (for properties in a flood zone)

Renovo will require a separate FEMA policy OR private flood insurance policy for any properties located in a flood zone.
The limit on the additional policy must be no less than the limit on the related dwelling policy.

HOA Requirements

For condo units or condo buildings, we will need dwelling insurance “HO-6” (Drywall In) and a Master HOA policy.

Escrow Terms

All escrow payments will be paid directly to the Insurance Carriers (i.e. direct billing). We will not provide any payments to agents and agencies (i.e. agency billing).

Blanket Policies

Bridge – Renovo allows blanket policies on an exception basis, as long as the only properties on that policy, are related to a Renovo loan. There cannot be properties unrelated to Renovo on the blanket policy.
Term – Renovo allows blanket policies on a “per loan” basis (which means as long as the properties on the policy pertain to the one loan, it may be deemed acceptable). There cannot be properties unrelated to the one loan OR unrelated to Renovo on a term loan blanket insurance policy.

What Renovo Won’t Accept – We do not accept any Master Policies/Investor programs with a “Master Named Insured” or with shared property limits (e.g. we do not accept programs such as NREIG, REInsure Pro, or Arcana)

Types of Policies

Builders Risk Insurance Rehab Loans New Construction Loans
Vacant Dwelling Insurance Vacant Building Completed (No Tenant)
Occupied Dwelling Insurance (AKA “Lessor’s Risk Insurance”) Mini-Perm Loans Term Loans Completed (Tenant Occupied)

Documents Needed to Close

”Paid in Full” Receipt
Bound “Evidence of Insurance” (EOI):
Declaration page: We need at least the first page of the final policy
Accord Form: if the form says, “Temporary” or “Binder” anywhere on the document Renovo must receive a “Final Policy” with 90 days of the closing date, or the loan WILL be subject to force-placement

Insurance Minimum Requirements 2024

Coverages

AM Best

Demoteach

KBRA

S&P

RCV

ACV

General Liability

Coinsurance

BI/ Loss of Rent

Deductible

Term

Paid in Full?

Bridge

BBB

The lower of the Loan Amount  or  100% of Replacement Costs

Only allowed if RCV is unobtainable by any insurance carrier. This warrants a review and an exception.

Not Required

80% Co-Insurance 20% Borrower

Occupied – 6 Months  Not occupied – N/A

Maximum of $10,000

12 Months

Yes