protects the property’s structure against any damage caused by fire, hurricane, or earthquake. Its purpose is to cover the risk of loss and, if damages occur from a covered event, allow you to rebuild the property, subject to the provisions of your mortgage contract.
It is important that as a property owner, you:
- Keep your property properly insured
- Keep your insurance agent informed of any changes in the structure, use, or occupation
- Check that the description of your property and the limits insured in the policy are adequate
All property serving as collateral for a mortgage loan must have insurance to protect the structure against fire, hurricane, and earthquake risks.
Payment for this policy will be considered within the projected disbursements in the escrow account analysis and may affect your monthly payment. If the cost of your policy increases, your monthly payment could be higher.
This type of insurance does not cover losses due to floods, landslides, or tsunamis. If the property is in an area prone to these events, you must procure an additional policy that covers those risks.
If you want coverage for the contents (furniture or other valuable items) of your property, please contact your insurance agent for guidance.