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Must I have 2 home insurances for hazard and personal belongings for refinancing condo?

I recently refinanced my condo and was asked to get a hazard home insurance as well as type 6 insurance for personal belongings form Bank of America. I was told the rule was effective about one and half month ago. Anybody knows about this law? I wonder if I have to keep both of them indefinitely and any one has the same experience. Thanks.
  • June 30 2009 - Berkeley
  • 0Yes

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Answers (2)

Best Answer

Yes, HO-6 is relatively new.  It is required on all new Fannie Mae loans for condos, typically you must insure 20% of the appraisal value for internal contents.  In most cases HOA dues will cover external insurance.   The HO-6 policy is typically inexpensive.

You will have this same issue at any other lender.
  • June 30 2009
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Some lenders are requiring insurance proof up to and including the interior wall.  Other lenders are requiring insurance to cover cabinets, kitchen applicances, rug, etc (that is your type 6).

As far as I know it just depends on the lender.

Ed
  • June 30 2009
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