Common use of Borrower's Insurance Clause in Contracts

Borrower's Insurance. Borrower will get a standard hazard insurance policy for at least the face amount of the Note with the normal conditions including fire, extended coverage, vandalism, malicious mischief, course-of-construction endorsement, and a loss payable endorsement naming Lender as payee. Borrower will also get any additional coverage required in the Security Instrument. Borrower will notify Lender immediately of any fire or other casualty relating to the Property or the Work. This insurance will be effective when Contractor’s Insurance terminates. The policy will have a deductible of no more than $5,000.00. At least 30 days before the expiration of each policy Borrower is required to maintain, Borrower will furnish Lender with evidence satisfactory to Lender of the payment of such premium and the reissuance of a policy continuing insurance in force as required under the Loan Documents. All such policies shall contain a provision that such policies will not be canceled or materially amended, which term shall include any reduction in the scope or limits of coverage, without at least 30 days prior written notice to Lender. If Borrower fails to provide, maintain, keep in force, or deliver and furnish to Lender any of the policies of insurance required under the Loan Documents, Lender may buy such insurance, and until Borrower reimburses Lender, the amount of all such premiums, together with interest thereon at the rate stated in the Note unless a lesser rate of interest is specified by applicable law, then at the lesser rate, and as extended, amended, and renewed from time to time, shall be secured by the Security Instrument.