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Add DSCR & Fix-Flip Clients to Your Book: What Private Lenders Require (and Why You Can Upsell Umbrella)

Author

George Tsividakis
August 07, 2025

An insurance-agent playbook for turning one-off binder requests into sticky, high-premium accounts.

1 | The Private-Loan Surge = Fresh Policy Demand

Loan Type

2024 Volume

2025 YoY Growth*

Core Coverage Needed

DSCR 1-8 Unit Rentals

$70 B

+18 %

Landlord package + umbrella

Fix-&-Flip / Bridge

$52 B

+22 %

Vacant dwelling / builder’s-risk

Small Ground-Up (<$2 M)

$11 B

+25 %

Builder’s-risk + GL

*Source: AAPL, ATTOM, LoanFunders.com pipeline data.

Private-capital closings often fund in 10–14 days—brokers who deliver binders fast get pulled into every deal the lender funds.

2 | What Private Lenders (Like Us) Actually Require

Coverage Item

DSCR Refi (Stabilized)

Fix-&-Flip / Bridge

Why It Matters

Named Insured

Borrower LLC + lender loss-payee

Same

Prevents payout disputes

Special Form (DP-3) or CP 00 10

✔

N/A

All-risk on rentals

Vacancy / Builder’s-Risk Form

N/A

✔ (Reno >10 %)

Bridge won’t fund without it

Liability

$1 M / $2 M GL

$1 M / $2 M GL

Court-ordered receivers & vagrants

Loss-Payee Clause (ATIMA)

Required

Required

Protects lender’s collateral

Replacement-Cost Valuation

Required

Required

Loan amount ≤ RC

Deductible Cap

≤ $10K or 1 %

≤ 1 % completed

Limits borrower skin

Umbrella

✔ Highly Encouraged

✔ Highly Encouraged

Litigation spikes on rentals & job sites

*(We send a one-page requirements PDF you can upload to every underwriter.)

3 | Your Upsell Script: Umbrella & Package Bundles

When quoting:

“Your lender needs $1 M GL. Most investor lawsuits settle north of $2 M. A $5 M umbrella is $450 a year—less than $40 a month—and it covers every door you own.”

Bundle landlord (or builder’s-risk) + umbrella → lift annual premium 35–60 % without adding acquisition cost.

4 | Fast-Binder Checklist (Hit These, Fund in 48 Hours)

  1. Exact Vesting of borrower LLC (match loan docs).

  2. Loss-Payee Language:
    LoanFunders.com LLC, Its Successors and/or Assigns, ATIMA

  3. Evidence of Replacement Cost ≥ loan amount.

  4. Vacancy / Reno Endorsement if dwelling >20 % gutted.

  5. Effective Date = funding date + 12 months (include 30-day renewal notice).

  6. Umbrella Dec Page (if upsold).

  7. Email single PDF → [email protected].

5 | Case Study — Agent “James” Upsells Umbrella on a 4-Plex DSCR Refi

Line

Premium

Commission (15 %)

Landlord Special Form

$1,200

$180

$5 M Umbrella

$450

$67

Total 1st Policy

$1,650

$247

Plus 3 more rentals same borrower (cross-sell)

+$3,300

+$495

Annual Commission from ONE Borrower

—

$742

All from a same-day binder request.

6 | Mistakes That Kill Deals (and How to Fix Fast)

Oops

Impact

Quick Fix

Deductible $25 K on $350 K loan

Lender rejects

Endorse down to $5 K; rider in <2 hrs

Builder’s-risk missing theft sublimit

Funding delayed

Add $25 K material-theft endorsement

Named insured = personal name, loan in LLC

Doc mismatch

Issue Name-Insured Endorsement immediately

7 | Your 48-Hour Winning Workflow

  1. Save our Requirement PDF in your AMS.

  2. When borrower (or lender) calls, quote landlord/BR + umbrella together.

  3. Bind & send binder within 24 hrs.

  4. Follow up post-close: “Need coverage on your next flip? I can issue same-day.”

  5. Add recurring renewal touches—private loans churn properties every 12–18 months.

Ready to Add DSCR & Fix-Flip Borrowers to Your Book?

Ask us for our Insurance Partner Kit—requirements sheet, sample binder, and email templates that get lenders to say “Cleared to Fund” on the first try.

Bind fast, upsell smart, book more premium.