Be on the Look Out for Insurance Scams from Commercial Hard Money Loan Lenders

Applying and receiving a loan from a commercial hard money lender is considered as a commercial hard money loan, including private money loans, bridge loans, and all other alternative non-bank financing. In case you are offered a commercial hard money loan, and the requirement is that you first buy a form of insurance, for instance, loan insurance or life insurance among others, know that this is most likely a scam. This is because the only type of insurance that you will require when applying for commercial hard money loans is a hazard insurance that only covers the property. You can obtain this type of insurance from your insurance agent, and it is also similar to a homeowners insurance policy used to cover a personal property.

If someone offers you commercial hard money loans and insists that you need to have a life insurance for them to finance you, or that you need any other form of insurance different from a hazard insurance policy for the asset or property itself, then this will most likely be a scam.