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Do you legally have to have home insurance to get a mortgage?

In: Insurance, Mortgage Insurance, Property Law [Edit categories]

Answer:

It is the Mortgage company's requirement. One of their conditions for loaning you the money is that you carry insurance. This protects their investment in the home.

If you attempt to cancel the insurance after you get the loan, your agent is required by law to notify the lender. They will then placed "forced coverage" on the property. This coverage is much more expensive and only covered the lender, not you. So you are best to get your homeowner's policy and keep it paid and in force.

First answer by Dgardner74. Last edit by Britefutr. Contributor trust: 23 [recommend contributor ]. Question popularity: 1 [recommend question].

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