Private lender looking for specifics on Insurance question

[Chris D.]

Hi BP members - I am not knowledgable about insurance. I'm lending to a borrower who has multiple flips going on. I just want to make sure I am adequately insured so would appreciate any feedback from insurance professionals or other lenders. The property is in Maryland. The type of insurance I'm getting is Builders Risk. I notice there are 3 categories under type of insurance. There is Basic, Broad and Spec. None of the boxes are checked. The limit listed on the Binder is for my loan amount. There is commercial general liability listed of $1M per occurrence and General Aggregate of $2M and Personal and Adv. injury of $1M. I took a great class in private lending where we were advised NOT to accept binders because they can be cancelled. In Maryland this binder states, "the insurer has 45 business days, commencing from the effective date of coverage to confirm eligibility for coverage under the insurance policy."  This clause does not give me a warm fuzzy. Any advice would be greatly appreciated.