Sec. 05.13.07.06. Liability and Other Insurance

A. The borrower shall maintain property, fire, and extended coverage insurance on the real and personal property comprising a project both during and after construction.

B. If the project is located on real property in the 100-year flood plain, as designated by the United States Administration of Housing and Urban Development, the project shall be covered by a flood plain insurance policy.

C. For all secured loans, the borrower shall provide a standard American Land Title Association (ALTA) Loan policy or other form of title policy approved by the Administration.

D. The Administration may require the borrower to obtain any of the following types of insurance, depending on the size of the project and risks to the Administration:

(1) Owner's liability;

(2) Owner's property or hazard or contractor's builder's risk;

(3) Contractor's liability;

(4) Architect's errors and omissions; and

(5) Engineer's errors and omissions.

E. All insurance required under this regulation shall meet the following requirements:

(1) Be written by a company registered with the Maryland Insurance Administration;

(2) Name the Administration as an additional insured;

(3) Be in force at the time of closing;

(4) Not be terminable without prior notification to the Administration;

(5) Be in force for the duration of the financial assistance; and

(6) Contain such other terms and coverage satisfactory to the Administration.