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#2268654 - 04/04/22 08:26 PM Contents Coverage w/Blanket Security Agreement
BA13 Offline
100 Club
Joined: Jul 2016
Posts: 194
Loan A is an Ag real estate loan that includes a shed that's located in a SFHA. Loan B is secured by a blanket security agreement that includes everything listed on the financial statement which includes machinery that's stored in the shed for Loan A. Does this trigger contents coverage for Loan A or would Loan A have to be secured by the shed and the contents?
Last edited by BA13; 04/04/22 08:37 PM.
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#2268658 - 04/04/22 08:54 PM Re: Contents Coverage w/Blanket Security Agreement BA13
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 83,226
Galveston, TX
Contents coverage is only required when both the building and the contents secure the same loan. If you have any cross-collateralization language in your loan agreements/security instruments, it would be required.
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#2268659 - 04/04/22 08:59 PM Re: Contents Coverage w/Blanket Security Agreement BA13
BA13 Offline
100 Club
Joined: Jul 2016
Posts: 194
We don't have that language in our agreements so we're good! Thank you for clarifying this for me!

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