Insurance Requirements
If your insurance is in an escrow account and is provided by a major carrier, premiums are paid via electronic interface. Otherwise, insurance checks are mailed out 21 days prior to the effective date of your policy. Checks are typically sent standard first class mail and it can take up to 10- 12 days for your insurance carrier to receive and update their records.
Submit all insurance information via one of the following methods:
Please reference your loan account number on any information sent.
If you are changing companies on the policy renewal date, please contact our office at least 45 days prior to renewal to advise of the change. We then require a copy of the new policy, which can be sent via:
For a policy changing at renewal, we will pay the new policy. If you are not changing at renewal and require us to pay the new policy, we will pay the first year and you will need to contact your old carrier to seek a refund. Once you receive the refund, please forward to us to re-deposit into your escrow account. If we do not receive the refunds within 45 days your loan will be reanalyzed, which may cause an increase in your monthly payment.
Homeowners insurance protects your investment and our interest in the property. It protects you against a loss. Whether the loan is escrowed or non-escrowed, insurance must be maintained and proof of continuous coverage must be sent in to the mortgage company in writing. If insurance lapses the mortgage company will place a policy on the home.
If proof of necessary insurance is not received then a lender insurance policy can and will be issued on the property. This is a policy for the structure only. The policy would not protect certain items (personal property and liability) an insurance policy you could obtain on your own would cover. The lender insurance policy is typically more expensive than a policy you could obtain on your own.
The best way to verify exactly what is covered in your insurance policy is to contact the insurance company or your agent directly. They should be able to provide exactly what is covered and for what amounts.
The minimum coverage you are required to maintain is the full replacement cost of the structure or the unpaid principal balance if greater than 80% of the replacement costs, whichever is lower. Please contact your insurance agent to determine what the best coverage amount is for you.
The Federal Emergency Management Agency (FEMA) makes the determination on which properties are and which properties are not in a flood zone. For disputes on flood zone determination contact FEMA at 800-462-9029 or 800-462-7585 for the hearing or speech impaired.
If flood insurance is necessary the minimum coverage would be the lesser of the below:
If the factor being used is the replacement cost, then the replacement cost of the structure should match that amount which is outlined on the homeowner’s policy. FEMA minimum requirement does not take co-insurance implications into consideration.
We need to be provided a copy of the Master Insurance Policy for the Condo Association. This is the policy for the structure itself covering hazard and flood/windstorm, when applicable. In addition to the Master Policy, we may require a HO-6 policy that provides coverage sufficient to repair the interior of the unit, if the Master Policy does not provide this insurance protection. Normally, the Association will send the Master Policy evidence of insurance on your behalf, which can be sent via: