Insurance questions to settle before a refinancing.

1. Start with the actual lender checklist

Request the insurance requirements early, including named insureds, mortgagee wording, insurer eligibility, limits, deductibles and evidence requirements. Match the checklist to the correct borrowing entities and properties.

Fannie Mae's multifamily requirements illustrate the level of detail a lender may specify. They are not a universal standard for every loan. Where the proposed insurance differs from your lender's requirements, establish whether an exception is available before relying on it.

Source: Fannie Mae Multifamily Guide: Property insurance requirements

2. Separate the appraisal from the rebuilding estimate

Purchase price, appraisal value and reconstruction cost answer different questions. A lower market valuation does not, by itself, justify a lower insurance value. Review the construction, improvements and assumptions behind the statement of values.

Zurich highlights the importance of accurate insured property values. For a transaction, also consider demolition, debris removal and code-related work, and determine which costs fall under the proposed coverage. Values and limits should reflect the property being insured today.

Source: Zurich: Accurate property values in a changing climate (July 17, 2026)

3. Turn a percentage deductible into dollars

A percentage can look modest until someone calculates the retained loss. For illustration, a 3% deductible applied to a $10 million building value is $300,000, assuming that is the defined basis and no minimum changes the result.

Other forms may use different values, apply separately by building or coverage, include minimums, or operate differently across locations. Ask for a written calculation for the actual proposed form. Compare that number with the lender's permitted deductible and the owner's available cash.

4. Explain what is changing at the property

Vacancy, tenant mix, deferred maintenance, conversions and planned capital work can change how a property is underwritten. Chubb's guidance on underperforming properties is a useful reminder that weaker occupancy can introduce operational risks as well as financial pressure.

Give the underwriter a factual update: occupied area, uses, work in progress, protection systems and maintenance responsibilities. Separately review rental income assumptions and the policy's recovery period. A repair estimate is not automatically a sufficient income-protection limit.

Source: Chubb: Risk in underperforming properties (April 25, 2025)

5. Assemble one transaction file

IREM's underwriting guidance emphasizes the importance of information about how a property is managed. Combine that operational record with the financing documents so the parties are not working from different versions of the risk.

Our view: the useful deliverable is a short list of unresolved decisions, with an owner and deadline for each. It should identify what the lender requires, what the insurer offers and what the borrower would retain. A certificate alone cannot make those differences disappear.

Source: IREM: What insurance underwriters want to see from property managers (July 29, 2026)

• Complete policies and endorsements, not declarations alone
• Current statement of values and occupancy or rent roll
• Lender insurance checklist and relevant deadlines
• Maintenance, protection-system and planned-work records