HOMEOWNERS INSURANCE
An insurance policy which protects the owner (and the lender) against loss due to fire, theft or other perils listed in the policy. Flood and earthquake are not included in a standard policy but may be added with an accompanying increase in premiums.
Lenders require the owner to carry homeowners insurance to protect the property which is securing their loan.
Often homeowners insurance and property taxes are paid by the lender and the monthly mortgage payments are increased to cover these costs.
Jim Forsyth. College Realty Inc. GMAC Real Estate. 14767 Bear Valley Road, Hesperia, CA, 92345