They consist of the banks mortgage insurance, every time a mortgage on your four walls?

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Is it a standard requirement of mortgage lenders insist on buildings insurance? I hope it’s like in the case of a disaster, they must obtain their mortgage?

6 Comments
  1. Reply
    Right or Wrong
    May 19, 2011 at 10:43 am

    Yes and it’s usually incorporated in your loan payments.

  2. Reply
    DeeDee
    May 19, 2011 at 10:55 am

    all lenders require that your home be insured in an amount to at least equal the mortgage amount, with the lender listed as loss payee.

  3. Reply
    Grandma6
    May 19, 2011 at 11:18 am

    You should have home insurance to repair or replace your home after a disaster or something. Many lenders require Mortgage Insurance, which will pay them if something happens to you and you don’t pay.

  4. Reply
    Because I Said So
    May 19, 2011 at 11:43 am

    the insurance is for the owner, not the lender. if your house is destroyed by fire and you have no insurance, now you have to pay a mortgage on a house that doesn’t exist for 30 years! but if you file an insurance claim and they pay off your loan, then you just go get a new house.

  5. Reply
    Michael
    May 19, 2011 at 12:01 pm

    homeinsurance.awardspace.us – try this one. Got my home insurance from them. As I know they provide such a service.

  6. Reply
    Jalif
    May 19, 2011 at 12:32 pm

    Yes, your bank will insist on insurance to cover replacement of the building (but not the land).

    If you let this lapse, the contact may be invalidated, and the bank may reclaim the house if they so wish.

    Other replies have stated it is incorporated into your monthly payments, which is incorrect. Mortgage insurance may be included in your loan, which is a different product altogether (ie it insures the bank against the cost of selling your house, and the gap between sale and loan, if you stop making repayments).

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