In one sentence
The specialist reviewing the borrower's insurance for compliance with loan requirements.
The longer version
Insurance review is detail-heavy: coverage amounts, deductibles, carrier ratings, and the mortgagee and additional-insured clauses that protect the lender. Consultants or in-house specialists confirm the policies meet the documents.
Insurance is a classic late-failing item when started late, because fixing a non-compliant policy needs the broker and sometimes the carrier.
Common questions
- What does an insurance consultant do in lending?
- Reviews the borrower's policies and certificates against the loan's insurance requirements and identifies gaps before closing.
- Why do lenders use insurance consultants?
- Because insurance requirements are detailed and policies are complex. A missing coverage or wrong mortgagee clause is cheaper to fix before funding than after a loss.
- What do insurance reviews commonly find?
- Insufficient limits, missing endorsements, the lender not named correctly, deductibles above limits, or missing specialty coverage such as flood.
Keep reading
- The due diligence checklist, built to be runChecklists as systems, not documents.
- The commercial loan closing checklistWhat goes on the list and who owns each line.
- The commercial loan closing processThe five stages from term sheet to funded.
- Commercial loan softwareWhere this sits in the lending stack.