If the insurable value of the common elements is minimal – for example, the potential policy limit is less than or very near the cost of the standard deductible, is coverage mandatory?

If the lender determines that the insurable value of the common elements is de minimis (e.g., entrance signage, lamp posts, etc.), or close in value to any insurance deductible that would be obtainable, thereby negating a reasonable value of the insurance, the lender may document in the loan file a conclusion to proceed without insurance coverage on these common elements.