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

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 → Insurance@LoanFunders.com.

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.