Homeowner's or Hazard

These are required for both commercial and residential mortgages, and protect your property against loss from fire and other hazards. Typically, the lender requires coverage to reflect the loan amount. For example, if your mortgage is $150,000, then you would typically need $150,000 in insurance coverage.

Obtain enough coverage to replace your property and its contents as well. Ensure that your policy covers your artwork and other property, to what extent, and under what conditions.

For additional information about home owner’s insurance policies, review Types of Mortgage Insurance in Chapter 8: Buying Real Estate.