My lender is requiring I carry Hazard insurance on my investment property. They are asking the policy equal the 'unpaid principle of of the mortgage' which would be $90k.
Is this normal? How much would the monthly premium cost? I have placed an inquiry into my Insurance guy but if you have any recommendations to companies/brokers that would be super helpful! Thank you
If you own an investment property, you probably have some form of Property & Liability coverage. On a 1-4 family it would probably be a dwelling fire policy. on a 5+ unit property it would likely be a Business Owners (BOP) or package policy.
The Hazard Insurance would refer to the Building coverage under either of those policies. They are only concerned with their exposure ($90,000) while you should have coverage equal to the Replacement cost of the building.
Got it. So the 'dwelling' coverage I have been quoted for covers up to $120K, so perhaps I am covered? Thank you for your insight. I will ping my agent.