Flood Insurance coverage requirement?
Would flood insurance have to cover the assessed value of the home, or just the remaining amount of principal on the loan?
This property will not flood in my lifetime. It rained here for 30 days straight in 1991 and got nowhere near my back fence. I’m not worried about flooding, just purchasing the minimum required by law until the loan is paid. I think the minimum is the principal on the loan.
From all the research I’ve done, the minimum required by law is the principal on the loan. So no best answer.
You would want to insure your home for the cost to rebuild the home exactly as it is.
Therefore, it is neither the loan amount nor the market value (assed value) of the home.
Your agent will be able to direct you.
Filed under Home Insurance by on Jun 6th, 2010. Comment. 
My mortgage company sent me an escrow analysis report. They are raising my house payments by over $650.?
How can they do this and why? Is it legal to increase my payment by over 60%? When I called they said they had underestimated my taxes and insurance. And since I was in a new neighborhood it was liable to happen for the next several years. With the economy the way it is I already have trouble with my current bill as it is even though its current and never late. Now I’m running the risk of not being able to make my house payment and lose my home. Is there any resources that can help me PLEASE!!! I am a single mother and any help is greatly appreciated.
Same thing happened to me…however mine went up almost 800.00 a month…that was almost 20 years ago and it steadly goes up 100-150 each year. I started out with a monthy payment of 851.00….now paying close to 1,900.00 a month. This all has to do with the lovely school/property taxes we pay here on Long Island.
Filed under Home Insurance by on Jun 1st, 2010. Comment.