How to use the Insurance Matrix.
Six steps from lender requirements to a bound policy ready for closing. Plus practitioner tips on Builder's Risk vs Property distinction, wind deductible structures, flood-zone discipline, and the exclusion list lenders actually scrutinize.
A. Six steps
- 1
Download the Insurance Matrix workbook
You receive an XLSX with three connected sections: Lender Requirements (input) · Carrier Quote Comparison (the matrix itself) · Coverage Gap Analysis (output). Save into the deal folder. Suggested naming:
Insurance_Matrix_<Deal>_<YYYY-MM-DD>.xlsx. - 2
Load the lender requirements first
Pull from the loan agreement or commitment: minimum limits per coverage type · required endorsements (Builder's Risk, Loss Payee Wording, Mortgagee Clause, Waiver of Subrogation, ACORD 28) · deductible caps · A.M. Best rating minimum · cancellation notice period. These are the rows the carrier quotes get scored against.
- 3
Enter each carrier quote column-by-column
Columns: Carrier · A.M. Best · Annual Premium · Per-Property Limits · Aggregate Limits · Deductibles · Coverage Endorsements (Builder's Risk, Course of Construction, Equipment Breakdown, Ordinance & Law) · Exclusions (Flood, Wind, Earthquake, Mold, Terrorism) · Cancellation Terms · Notes. Match the carrier quote verbatim; do not paraphrase.
- 4
Run the Coverage Gap Analysis
The matrix auto-flags rows where a carrier's coverage is below the lender requirement. Red = below requirement; yellow = at requirement; green = above. Lenders will only accept "at requirement" or "above" — yellow rows pass; red rows require a higher quote or a waiver. The output is a gap list ranked by criticality.
- 5
Surface the exclusion list to the deal team early
Exclusions are where insurance deals fall apart at closing: a coastal property without Named Storm; a property in a flood plain without Flood Zone X coverage; a mixed-use property without Liquor Liability when there's a ground-floor tenant; an industrial asset without Pollution Liability. Run the exclusion column past the deal team before the carrier-selection memo, not after.
- 6
Generate the carrier-selection memo + bind the policy
The matrix's "Selection Memo" tab generates a one-page recommendation: which carrier · why · premium · gaps to address · timing for binding. Once selected: bind the policy, request the binder + ACORD 28 + Mortgagee Endorsement, deliver to the lender 5+ business days before closing. Insurance binder timing is a common closing-day blocker.
B. Practitioner tips
- Property insurance vs Builder's Risk: completed buildings use property insurance; buildings under construction use Builder's Risk + Course of Construction. The matrix has separate sections for each — don't conflate them.
- Wind / Named Storm deductibles are usually % of insured value, not flat $. A 5% deductible on a $50MM property = $2.5MM out-of-pocket before insurance kicks in. Lenders care about this number, not the headline premium.
- Flood Zone discipline: every CRE property in a flood plain (Zones A or V) requires flood coverage. The Phase I ESA tells you the zone; cross-check before pulling quotes.
- A.M. Best rating below A- is usually a hard no for institutional lenders. Some allow B++ with explicit waiver; don't assume.
- Cancellation notice: 30 days is standard but agency lenders sometimes require 90 days. Confirm before binding; binders with shorter notice get rejected at closing.
- Equipment Breakdown coverage is often forgotten. For multifamily, industrial, and any asset with material HVAC/elevators/boilers, this is a real coverage gap if missing.
C. Scope & limits
- Not a substitute for a licensed insurance broker or risk-management advisor. The matrix structures the comparison; a broker negotiates the actual policy.
- Not for self-insurance / captive arrangements. Some institutional sponsors carry layered captive structures that don't fit this format.
- Not for specialty asset classes with unique coverage requirements (data centers, healthcare with malpractice, hospitality with liquor liability). The base template covers multifamily / office / retail / industrial conventions.
- Does not handle multi-property portfolio policies (blanket coverage vs per-property). Single-property analysis only.
D. Pairs with
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Insurance Matrix Builder
Skill (forthcoming Q4 2026)
Reads 2-4 carrier quotes (PDF); populates the matrix; flags exclusions and below-lender-requirement gaps.
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Tax & Insurance Servicer
Agent (forthcoming Q4 2026)
Owns the carrier-selection memo, binder follow-through, and policy renewal cycle.
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Closing Coordinator
Agent (forthcoming Q4 2026)
Tracks insurance binder + ACORD 28 + Mortgagee Endorsement on the closing checklist.
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Tax Analysis
Template (available now)
Companion analysis on the tax side; tax and insurance are usually reviewed together for deal-level operating-expense modeling.
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Lender Checklist
Template (available now)
The insurance line on the closing checklist is the deliverable surface for this matrix.
Next step
Build the full stack around it.
This template is the work surface for a specific AI agent + skill workflow. Open the Company Builder and assemble the matching agents when they ship Q3 2026.