Question:

Hazard insurance policy?

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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

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3 ANSWERS


  1. It is not the law, but all lenders do require that you have insurance. This protects their interest in the property. They don't care if you have enough coverage to rebuild, they just care that you have enough coverage to pay off the loan. If you don't get your own coverage they'll be happy to place coverage on the property at your expense.


  2. I have met similiar kind of problem before, here is the resource that I feel helpful..http://home-insurance.featured-resources...

  3. It's part of the lending agreement.  Your mortage isn't "sellable" if that clause isn't in there.  So it's up to the lender, but you won't find one to waive it.  Unless you've got like 90% equity in your home or some such.  Maybe.

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