Hazard Insurance Requirements for a Mortgage Loan in Greenville, SC

Hazard Insurance Requirements for a Mortgage Loan in Greenville, SC.

Mortgage lenders in Greenville South Carolina will require that you have minimum amount of Hazard Insurance coverage. Hazard Insurance is also known as Homeowner’s Insurance or Fire Insurance.

Hazard Insurance Requirements for a Mortgage Loan in Greenville, SC:

Amount of Coverage

The amount of coverage must be at least equal to:

• Replacement Cost coverage or similar verbiage as stated in the declarations page, or
• 100% of the insurable value of the improvements as established by the insurer.

Coverage Amount Endorsements

Insurance policy should cover 100% of the insurable replacement cost of the project improvements, including the individual unit.  Coverage does not need to include land, foundations, excavations, or other items that are usually excluded from insurance coverage.

An insurance policy that includes either of the following endorsements will ensure full insurable replacement coverage:

• Guaranteed Replacement Cost Endorsement (under which the insurer agrees to replace the insurable property regardless of the cost) and, if the policy includes a coinsurance clause, an “Agreed Amount Endorsement,” which waives the requirement for co-insurance, or
• Replacement Cost Endorsement (under which the insurer agrees to pay up to 100% of the property’s insurable replacement cost, but no more) and, if the policy includes a coinsurance clause, an “Agreed Amount Endorsement,” which waives the requirement for coinsurance.

When a homeowner’s insurance policy does not reflect replacement cost coverage language, Operations can verbally verify with the insurance agent replacement cost coverage or adequate insurable value.  

The verified insurable value must be no less than the amount of coverage on the policy.

Your mortgage lender will provide a Processor Certification to document the verbal verification of sufficient coverage to include:

• Date of call
• Insurance company name
• Agent name
• Phone number of insurance company/agency contact
• Policy number
• Whether replacement cost or adequate insurable value (for hazard)
• Name and title of employee that contacted the insurance agent.

Call me if you have any questions regarding hazard insurance requirements for a mortgage loan in Greenville SC.  I'm happy to help.

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Have a Big day,

Randy

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