Home Insurance Daily Digest

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In the United States, most home buyers have a loan of money in the form of a mortgage loan, and the mortgage lender at all times requires that the buyer acquire homeowners insurance as a condition of the loan, in order to protect the bank if the home were to be shattered. Anyone with an insurable interest in the property should be listed on the policy. In some cases the mortgagee will relinquish the need for the mortgagor to carry homeowner’s insurance if the value of the land exceeds the amount of the mortgage balance. In a case like this even the total destruction of any buildings would not affect the ability of the lender to be able to exclude and recover the full amount of the loan. The insurance dilema in Florida has meant that some waterfront property owners in that state have had to make that decision due to the high cost of premiums.