How do you want to learn about lender-placed insurance?
What's lender-placed insurance?
If your insurance lapses or you don't have enough coverage, we're required to purchase insurance on your behalf. We do this so your home can be repaired or rebuilt if it's damaged.
Coverage requirements for different types of insurance:
- Homeowners insurance. You're required to have at least 100% of the estimated cost to repair or replace your home covered. Learn more about homeowners insurance.
- Flood insurance. Your flood insurance coverage has to be at least equal to the lowest of these options: 100% of the estimated replacement cost value for your property; combined outstanding balance of all loans and maximum line of credit limits; the maximum amount of coverage available under the National Flood Insurance Program (currently $250,000.00 for residential buildings)
Keep in mind that there are pros and cons to only getting the minimum amount of insurance required. If you only have the minimum amount required, it may not be enough to pay for all of the needed repairs after a flood. Be sure to discuss your flood insurance needs with your insurance company.
Learn more about flood insurance.