Is it legal for the bank to require you to purchase home owners insurance for 3 times the value of the loan?

Answers.com > Wiki Answers > Categories > Business & Finance > Insurance > Homeowner's Insurance > Is it legal for the bank to require you to purchase home owners insurance for 3 times the value of the loan?
Answer:
Your homeowners insurance in the United States must by law cover the value of the home being insured with no more than a 20% deviation. This may be more or less than the amount of your loan. No insurer will knowingly sell you a home insurance policy below the home value as such an insurance contract would be invalid.

Homeowners insurance is for the home, not for the loan. You can purchase your homeowners insurance based on actual cash value of the home or on the replacement cost of the home.

If you only want to insure a mortgage loan amount, that's what mortgage insurance is for.
First answer by Insurance Plus. Last edit by Insurance Plus. Contributor trust: 609 [recommend contributorrecommended]. Question popularity: 2 [recommend question].

Can you answer these Homeowner's Insurance questions?

Relevant answers:

Related Ads:

Related ads:

Sign in using:

Answers.com members:




Create account
Join using:

Join Answers.com:





Already a member?
Sign in
Why join?
Joining is free and easy. You can still be anonymous; just choose any username and password.

  • Get notified about updated answers
  • Follow your favorite categories
  • Get credit for your contributions
  • Customize your profile
  • Answer questions more easily
Not convinced? Read more.
Lost your password?

You may already have an Answers.com account.
Click here to connect your accounts.  
If you don't want to connect accounts, you can start a new one from scratch.
Minor details...


  

Connect your accounts...




Lost password?
Why do we need your email address?
We will use your email address to send you updates (if you request them) about questions you ask, answer or track, and to help you retrieve your password if you forget it.

Your email address will not be used for any other purpose without your permission.
Already have an Answers.com account? Connect your accounts!
By doing so, you include all of your history (contributions, messages, profile) from your Answers.com account in your Facebook account.

If you don't connect accounts, your new account will be starting from scratch.

Home

Welcome
Help center
Browse categories
Random question
Community forum