When making real-estate-secured loans, lenders routinely require borrowers to maintain specified types and amounts of insurance on the property that serves as the lender's collateral. Loan document insurance provisions also typically require the borrower to provide to the lender evidence that the required insurance is in place. As a reminder, Texas law prohibits lenders from requiring a borrower to provide evidence of renewal/replacement policies any sooner than 15 days before the expiration of an existing policy (Sec. 549.054 of the Texas Insurance Code).
If you have questions about insurance requirements or other loan document provisions, feel free to contact me.
Laura McClellan
www.tklaw.com
