Common use of Other Policies Clause in Contracts

Other Policies. To be acceptable, any other insurance policies must con- form to the requirements of this In- struction. (i) ‘‘Homeowner’s’’ policies, ‘‘All Physical Loss’’ policies, ‘‘Broad Form’’ policies, and other such all-inclusive policies are acceptable if they other- wise meet the requirements of this In- struction. (ii) A builder’s risk policy naming the borrower as the insured or a build- er’s risk endorsement for a policy issued to the borrower may be accepted during the period a building is under construction if the policy otherwise meets the requirements of this Instruc- tion. If such a policy or endorsement does not automatically convert to full coverage when the building is com- pleted, acceptable insurance must be obtained simultaneously with the expi- ration of the builder’s isk provisions of the policy. (iii) A builder’s risk insurance policy issued to a contractor only may not be substituted for the property insurance, the borrower is required to provide. (iv) Borrowers eligible for insurance under the National Flood Insurance Act of 1968, as amended by the Flood Disaster Act of 1973, will be serviced in accordance with subpart B of this part.