Your mortgage company requires insurance coverage on all properties it is financing. These coverages are Hazard/Homeowner Insurance and Flood Insurance.

Hazard/Homeowner Insurance:

1. An insurance certificate or policy with proof of payment of the first year's premium in full must be provided to your mortgage company prior to or at closing. Your Insurance agent can provide this form to you.
2 Borrower name(s) must appear exactly as shown on the Deed of Trust or Mortgage.
3 The loss payee clause must list your mortgage company, its successors, and or assignees and the address of the mortgage company. You can get this info from your loan originator.
4. The insurance coverage must protect against loss or damage from fire and other hazards covered by the standard extended coverage endorsement. The coverage should be of the type that provides for claims to be settled on a replacement cost basis.
5. The amount of coverage must be equal to the loan amount or replacement value, whichever is less.
6. The effective date of the policy must be no later than the date of closing.
7. You must obtain your insurance policy from a company licensed to sell insurance in the state where the property is located. That company must also have a  general policyholders rating and a financial size of III from Bests Key Rating Guide. The insurance agent can verify this information.

Flood Insurance:

A. If flood insurance is required, a policy or an application for such a policy, with loss payee clause as detailed in (3) above, must be presented at or prior to closing. Proof of payment of the first year's premium in full must also be provided.

B. Coverage amount must be for the maximum allowed by flood insurance regulations or the loan amount, whichever is less and the policy must be in effect no later than the closing date. The above insurance requirements are designed to protect you and your mortgage company against losses resulting from damage to the property. You should consult with your insurance agent concerning adequate insurance coverage for your individual needs.

For more information on flood insurance go to FEMA

Click here- To go to
Federal Emergency Management Agency page.

John DeBrito

SOLD Real Estate Company
Phone - 719- 270-1167
E-mail [email protected]