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Amount of Force-Placed Hazard Ins.

Home Forums Real Estate Settlement Procedures Act/ Regulation X Amount of Force-Placed Hazard Ins.

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  • #5557
    tparker
    Participant

    I haven’t found anything that designates the required amount of force-placed hazard insurance like it does for flood. Would it have to be for the appraised amount of the home or only for the principal amount of the loan? We have several loans where ww are in second position and it seems they sometimes forget to tell the agent they have a second mortgage and we don’t receive a renewal of insurance. What is required on our part as far as amount?

    #5572
    rcooper
    Keymaster

    I agree, there isn’t anything in the Reg X force-placed insurance requirements that dictate how you should determine coverage amount like there is in the flood rules. I recommend looking at your loan contract and policy to determine what you are permitted to do. Also, on a second lien, you should ensure you are added to those policies and then follow your loan contract and policy for your coverage amount on junior liens.

    Beginning on page 75 of the preamble to the Servicing Rules, 1024.37 and coverage amount are discussed. Here’s the link: https://files.consumerfinance.gov/f/201301_cfpb_final-rule_servicing-respa-preamble.pdf

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