A DSCR loan lender will almost always require a landlord (dwelling fire) policy on the property, with the lender listed as mortgagee, plus liability coverage and proof of coverage before closing. Many also require loss-of-rents coverage, and flood insurance if the property is in a flood zone. Your lender’s closing checklist sets the exact requirements.
If you are buying or refinancing a rental, insurance is the item most likely to delay your closing. Adrian Chu Agency helps real estate investors get the right policy quoted and bound before their closing date.
What lenders typically require on a DSCR loan
- Landlord / dwelling fire policy that covers the property as a rental, not as an owner-occupied home
- Replacement-cost coverage at or above the loan amount or rebuild value, as your lender specifies
- General liability coverage at the limit your lender requires
- Loss of rents (fair rental value) coverage, which many DSCR lenders require
- Flood insurance if the property is in a FEMA-designated flood zone
- Mortgagee clause naming the lender, and an evidence of insurance document delivered before closing
- Proof of payment (many lenders require the first year’s premium paid at or before closing)
Requirements vary by lender and by property. Always match your policy to your lender’s written requirements.
Common mistakes that delay closings
- Buying a homeowner policy for a rental. Standard homeowner policies usually exclude rentals. Lenders reject them.
- Waiting until the week of closing. Underwriting often needs the binder earlier than investors expect.
- Wrong named insured. If the property closes in an LLC, the policy must match the entity on the loan and title.
- Missing loss-of-rents coverage when the lender requires it.
- Vacant or renovating properties. Standard policies often limit or void coverage on vacant properties. Fix-and-flip and value-add buyers typically need a vacant-property or builder’s-risk policy.
Coverage we help investors place
- Landlord / dwelling fire policies for long-term rentals
- Short-term rental coverage
- Vacant property coverage
- Builder’s risk for renovations and ground-up construction
- Umbrella liability for investors with multiple properties
How it works
- Send us your property address and closing date.
- We shop your coverage through our carrier partners.
- You get options and the evidence of insurance your lender needs.
Most quotes within one business day. Call or text Adrian at 206.407.5452 for the quickest response.
Frequently asked questions
Does a DSCR loan require landlord insurance? Yes. Lenders generally require a landlord policy that covers the property as a rental, with the lender named as mortgagee.
Can I use my homeowner policy on a rental property? Usually not. Homeowner policies are written for owner-occupied homes and commonly exclude rental use.
Does a DSCR lender require loss-of-rents coverage? Many do. It pays for lost rental income after a covered loss. Check your lender’s checklist.
Do I need flood insurance? If the property is in a FEMA special flood hazard area, lenders generally require it. Standard property policies do not cover flood.
When should I request a quote? As soon as you have a signed purchase contract or a refinance application, so the policy is ready before underwriting needs it.
What if the property is vacant or being renovated? Standard landlord policies often restrict coverage on vacant properties. Ask about vacant-property or builder’s-risk coverage before you close.
Can the policy be in my LLC’s name? Yes, and it must match the borrower and title on your loan. Tell us the exact entity name.
Request a quote
E-mail [email protected]
Working with a lender already? Ask them to send us your closing checklist.
Adrian Chu Agency is a licensed insurance agency.
Licensed as Adrian Chu Agency LLC in WA (Agency License #1354984) and Adrian Chu Insurance Agency in CA (Agency License #371267546). Adrian Chu, Producer License #1354790 in WA and #4557898 in CA.
Coverage is subject to carrier underwriting, availability, and approval.
Descriptions on this page are general and are not a guarantee of coverage or lender acceptance. Your policy terms and your lender’s requirements control.