This Note examines the South Carolina Supreme Court decision Kirkman v. Parex and the potential uncertainty facing lenders in ascertaining whether they meet the requirements a court will use in determining lender liability: “substantial involvement” and a three part test for an effective disclaimer. Subsequently, this Note proposes enactment of a statute allowing lenders or developers the option to acquire insurance in lieu of a disclaimer to avoid the uncertainty arising from Kirkman and to decrease potential litigation costs for both lenders and buyers while providing buyers with adequate protection against latent construction defects.