3.9.3 Other Insurance Requirements

A. Both HUD and the Lender must be named as additional insured on the policies of insurance, with the standard Lender clause reading: “loss payable to the mortgagee, its successors and assigns.” All insurance carriers or providers that issue policies of insurance on a HUD insured project must have and must maintain during the policy period a rating that is acceptable to HUD (A.M. Best Financial Strength Rating [FSR] of B+ or better). Further detail of ongoing requirements for insurance coverage after Endorsement may be found in the Asset Management Handbook (HUD HB 4350.1). The amount of property insurance required is further discussed in the Asset Management Handbook.