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BankersOnline.com Forums Dodd-Frank Final Rules Discussions TRID - TILA/RESPA Integrated Disclosures Rule Insurance on construction
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#2065116 - 02/19/16 08:42 PM Insurance on construction
rsanders Offline
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Joined: Feb 2010
Posts: 72
We are doing our first loan estimate on a construction loan. Are we required to put an estimate of builder's risk insurance on the loan estimate?

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TRID - TILA/RESPA Integrated Disclosures Rule
#2065174 - 02/20/16 02:40 PM Re: Insurance on construction rsanders
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,371
Galveston, TX
Who is paying for it?
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#2065342 - 02/22/16 07:49 PM Re: Insurance on construction rsanders
rsanders Offline
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Joined: Feb 2010
Posts: 72
The borrower

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#2065356 - 02/22/16 08:06 PM Re: Insurance on construction rsanders
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,371
Galveston, TX
Isn't this typcially paid by the builder and it is just built into thier construction costs?
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2065364 - 02/22/16 08:21 PM Re: Insurance on construction rsanders
rsanders Offline
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Joined: Feb 2010
Posts: 72
In this case no. The individual has a contractor doing some of the work and he will do some of the work himself.

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#2065381 - 02/22/16 08:54 PM Re: Insurance on construction rsanders
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,371
Galveston, TX
Well, if you are requiring him to purchae the insurance at/prior to funding as a requirement of the loan, it would go into prepaids like any other insurance.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2067348 - 03/03/16 05:48 PM Re: Insurance on construction rsanders
julesbok Offline
Junior Member
Joined: Mar 2014
Posts: 47
OK
Would the builders risk premium info also go in the Estimated Taxes, Insurance, & Assessments section on Page 1, if the borrower is paying for it? We have a customer who will be paying the insurance, rather than the builder, on a new construction loan.

I have searched for days to get a clear answer regarding whether to show Builders Risk Insurance premiums, since it would be the only "insurance" obtained for the replacement cost of the property during the initial year after consummation for homeowners insurance.

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