Homeowners insurance protects your property from risks like fire, storms, theft, and certain types of damage. Lenders require it because the home is collateral for the loan. The cost depends on location, home value, coverage level, and risk factors such as flood zones. It’s not just a lender requirement — it’s financial protection for you.
When it comes to condominiums, the condominium must carry an insurance policy to cover the entire structure because it houses many individually owned units. However, those policies usually do not cover from the walls inside. That’s why in most cases, condominiums also require an additional insurance policy referred to as the “walls in” policy and it’s usually less expensive than a regular homeowners policy.
Please consult your Mortgage Advisor for guidance specific to your situation before making changes.
