I received a flood policy for a commercial loan where the named insured is slightly different than the actual property owners name.
The policy shows the named insured to be Black River Valley, LP but the title commitment shows the actual property owners to be Black River Valley Partners, LP.

This is a rather large loan and need to be sure we have a valid policy. Is this close enough or should we have the correct name shown as the insured before the loan is funded?

That would be like have a policy with a named insured of John Burnett when the property is owned by Randy Carey.

Those would be two totally different entities.

Our loan is to Entity A who is selling the home (our collateral) to Buyer under a rent-to-own contract. Buyer purchased the flood insurance, and the flood policy reflects Buyer's name with our bank as loss-payee. Does the policy need to reflect our borrower's name in addition to the Buyer's name?

If this a rent own contract, what is the role of the bank in this transaction?

The bank took the collateral as security for our loan to our borrower. Subsequent to our loan, our borrower is selling the home to Buyer, and under that contract, Buyer is responsible for purchasing hazard and flood insurance and paying property taxes.

Since likely you have a due on sales clause in your contract, I would have immediately exercised that clause and declared the loan in default. Depending on State law, your collateral is now jeopardized depending on the rights of the contract for deed purchaser. In many States they obtain an ownership interest in the property. If your borrower defaults, how do you plan to foreclose on the property? Regardless of any of that, the current vested owner of the property has to also at least be named as an additional insured.

Thanks, Mr. Carey.