What type of insurance needed for a HELOC on Primary?
Well, I canceled my homeowner insurance last year. We had it for 20+ years and never used it and decided to cancel it because we never ever used it and it would be a 1K expense every year. Fast foward to today, when I am researching HELOC's and HEL's and I find out that banks won't give a HELOC unless the house is insured.
My question is, what type of insurance is needed to get a Heloc? What type of coverage? I did quick quotes online with major vendors and they all come back 3K-4K a year, although Lemonade only came back with $1k. From what I understand my insurance needs to cover the HELOC amount right? So if I only want a 200k Heloc, could I just purchase insurance to cover 200k of value of my house? Or do insurance carriers require me to cover the full valued amount?