Sung A asked:
I believe, most lenders require that buyer obtain a hazard insurance policy prior to buying or refinancing a home.
My question is – Is this mandatory or lender’s policy or the law?…….or it’s up to lender? I am just curious. Thanks
Danielle
I believe, most lenders require that buyer obtain a hazard insurance policy prior to buying or refinancing a home.
My question is – Is this mandatory or lender’s policy or the law?…….or it’s up to lender? I am just curious. Thanks
Danielle
Jay
“Hazard” Insurance is homeowners insurance and you pay 1 years worth plus 3 months (at least on my contract) with prepaids…I think it’s required
Comment by Just say no! — August 2, 2010 @ 10:32 pm
Neil
it is mandatory from the lender. Remember the lender is letting you borrower money to purchase a home or refinance. They will require proof that if something happens to the dwelling on the property, ie, flood, fire, etc that you have enough coverage to replace the bank’s investment. Besides, it protects you as well since if something does happen to the home, you know that your insured and the dwelling will be replaced
Comment by Jeromy W — August 3, 2010 @ 11:24 am
Ralph
Mandatory, set in stone, you must have home owner’s insurance if you have a mortgage. It must cover the amount of the loan, or have full replacement value to cover the rebuilding of the house.
Comment by Lisa L — August 5, 2010 @ 1:20 am