Why Do Lenders Require Homeowners Insurance?

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   Tom Sheehan

   Agency Owner, The Thomas G Sheehan Agency, 27 Glen Road Sandy Hook, CT 06482

   Mortgage Lenders require that you show proof of Homeowners' Insurance because they have an obvious insurable interest in your property.  Much the same as auto finance lenders, mortgage companies want to be sure that should anything happen at your home while their loan is in effect, that there will be money available sufficient enough to handle any resulting repair costs.

   Answered on July 25, 2014

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