Policies Covering Multiple Projects

Except as described below, unaffiliated projects may not share a master property insurance policy. Each project must maintain its own policy that meets Homium requirements, as detailed throughout this topic.

If a property insurance policy that covers multiple unaffiliated projects provides a dedicated coverage amount for each individual covered project, the policy structure may provide equivalent coverage to Homium’s coverage amount requirements. The coverage amount dedicated to the subject project must be sufficient to cover the full replacement cost value of the project improvements including the common elements and residential structures.

The underwriter must review the insurance policy and any other associated documents needed to adequately evaluate the insurance coverage. The HOA must be protected in the same manner as if it maintained a master property insurance policy. The coverage of each insured project cannot be affected by any actions or omissions of unaffiliated projects covered by the same policy. Additionally, all other master property insurance requirements for project developments must be met.

The underwriter must document how they determined the applicable policy provides acceptable coverage as detailed above. A copy of the policy, along with the underwriters documentation must be maintained in the loan file.