No Company Will Insure My Home And My Lender Requires It. Will The Bank Purchase Coverage? Will It Cost Me More?
Free Insurance Quote Comparison
Secured with SHA-256 Encryption
UPDATED: Jul 16, 2021
It’s all about you. We want to help you make the right legal decisions.
We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.
When insurance is not available on the open market, there is typically a state-operated or-mandated “pool” of coverage so that no one will be forced to go without insurance. The cost of such insurance is typically higher than would be available in the open market. This is because the risk for property in the particular area is greater than in other areas.
If you are purchasing property in an area where insurance is not available on the open market, your lender will still require you to have insurance on the property up to at least the full value of the mortgage (or 80% of the actual value of the home). You may have to purchase “pool” coverage to meet the lender’s requirements. If you fail to keep your coverage in force, the lender will purchase coverage that protects its interest. In any event, read what the coverage is. You may discover that it covers only the structure, not your personal property.
If the lender requires coverage, you may choose your own insurer. You don’t need to purchase coverage from the insurer your lender recommends.