In real estate finance, a master policy is an insurance policy issued to a lender that provides coverage for properties located in more than one location. Rather than insuring each property under separate individual policies, the master policy consolidates coverage under a single agreement.
This type of policy is commonly used by lenders with multiple loans secured by different properties, allowing for consistent coverage terms and administrative efficiency. The master policy helps protect the lender’s interest against risks such as damage or loss across its broader real estate portfolio.
