Insurance Requirements
Amount
Carrier
Please contact us if you have questions about whether your preferred insurance providers qualify.
Types
Remember, this is just an overview. That means you shouldn’t assume any of these do or don’t apply to you based on this list alone. A chat with your insurance carrier is the best way to be sure about your requirements.
Homeowners (Hazard) Insurance
This is required for all mortgages to protect your home and investment and it can be paid through your escrow account.
Flood Insurance
Required if you live in an area with special flood hazards and it can be paid through your escrow account. This is determined by FEMA and based on flooding within the last 100 years.
Generally, flood policies must provide coverage, at a minimum, of the lowest of the following amounts:
- The full replacement cost of the dwelling and insurable improvements made to it.
- The unpaid principal balance of the loan.
- The maximum allowed through the National Flood Insurance Program (NFIP), which is $250,000.
Windstorm/Hurricane Insurance
Some states in high-risk areas—like the Gulf Coast and Hawaii—require this additional insurance separate from your homeowners (hazard) policy. If required, it can be paid through your escrow account.
Homeowner Association (HOA) Insurance
This can be required if you live in a condo or townhome. If required, your property association would manage it and include your payments as part of your HOA dues, so it will not be paid through your escrow account.
Mine Subsidence Insurance
May be required for people living in an area at high risk for movement of the ground surface in areas on top of former underground mines. This will not be paid through your escrow account.
Earthquake Insurance
May be required for people living in an area at high risk for earthquakes. It is common in California. This will not be paid through your escrow account.
