NM Pending Improvements Endorsement Guideline 23

Explanation:

The Pending Improvements Endorsement (NM 23) may be attached to an Owner's Policy issued in contemplation of immediate construction of improvements on the land evidenced by simultaneous issue of a Construction Loan Policy. An Owner's Policy insuring such contemplated improvements shall contain a Pending Improvements clause or endorsement. The amount of such policy may be the value of the land after the contemplated improvements are constructed, but only if the policy is endorsed with a Pending Improvements clause or endorsement.

 

Underwriting Requirements:

We require the following:

1. All Owner's Policies shall be issued for the amount of the current sales price of the land and any existing improvements appurtenant thereto, except at the request of the insured, the cost of improvements immediately contemplated to be erected thereupon may be added to the amount of insurance.

2. If the Pending Improvements Endorsement is to be attached to the Owner's Policy, you must review evidence of the owner's intention to immediately construct improvements and the cost of the improvements to be constructed, including the simultaneous issuance of a Construction Loan Policy for the contemplated improvements.

3. The endorsement premium shall be $25.00 in addition to the premium charged for the policy.