Insurance

Question 1

What are the three types of insurance coverage?

Answer 1

Dwelling, Liability, Fidelity Bond Coverage

Question 2

What does dwelling insurance cover?

Answer 2

Protection to help rebuild the structure of a home

Question 3

What does Liability insurance cover?

Answer 3

Protection from lawsuits for negligence or events that could occur on the property. This is only required to be reviewed on a Master Policy.

Question 4

What does Fidelity Bond Insurance cover?

Answer 4

Insures HOA for loses caused by dishonest, fraudulent acts of it’s employees. This is only required on properties with an HOA.

Question 5

What are the three types of properties?

Answer 5

Single family, Condo, Planned Unit Development (PUD)

Question 6

What are the three different types of policies?

Answer 6

HOI (Homeowner’s Insurance), HO-6, Master

Question 7

What does an HOI policy cover?

Answer 7

single family residence

Question 8

What does an HO-6 policy cover?

Answer 8

insures property within 4 walls of individual unit

Question 9

What does a Master policy cover?

Answer 9

insures a building shared by multiple units - for the HOA

Question 10

What is a declaration page?

Answer 10

A document that comes from the insurance company and summarizes coverage provided by the homeowners policy

Question 11

What is a Binder?

Answer 11

Contract of temporary insurance pending issuance of a formal policy. We do not proactively request this.

Question 12

What is an Accord form?

Answer 12

This form summarizes essential information about the policy

Question 13

What is the Replacement Cost Estimator (RCE)?

Answer 13

An estimate cost to rebuild the home in the event of total loss (like an appraisal).

Question 14

What is the mortgage clause?

Answer 14

Provision added to a property insurance policy that protects the lender.

Question 15

When should insurance be fully updated?

Answer 15

Required for CTC from Underwriting.
On Purchases, an insurance quote in the eFolder is okay.
Required to close with closing department.
This is on all transactions.

Question 16

What are the requirements for a purchase regarding effective dates?

Answer 16

Effective date must be prior to closing but no more than 15 days prior to closing date. It also must be good for 1 year.

Question 17

What are the requirements for a refi regarding effective dates?

Answer 17

Policies that expire within 60 days of funding must be paid at closing.

Question 18

What policies do a condo/PUD property require?

Answer 18

HO-6 and Master Policy
Master policy only needs to be effective through our closing date.

Question 19

Who is responsible for requesting, reviewing and submitting the HO-6 insurance to UW?

Answer 19

The processor

Question 20

When are flood certificates pulled?

Answer 20

They are pulled automatically (CoreLogic) on every file and uploaded to the eFolder. If the property is in a flood zone, proof of flood insurance is required.

Question 21

Flood insurance must always be escrowed on what type of property?

Answer 21

Single family residence

Question 22

Who reviews insurance at GR?

Answer 22

Rosie Jetson (Bot), UW, Condo Dept (if applicable)