What are the hazard insurance requirements for my loan?
As you may be aware, hazard insurance is required on your property in an amount equal to the full replacement value of the improvements on the property as established by your property insurer. Forms of residential property insurance that are acceptable under University Mortgage Loan Programs include: (1) Guaranteed Full Replacement Cost Coverage; or (2) Extended Replacement Cost Coverage that pays up to a specified amount above the policy limit. In many cases, especially if the home is several years old, it is advisable to also obtain a partial or full building code upgrade endorsement. • Which hazard insurance companies are acceptable for my loan? You may obtain the required property insurance from any properly licensed insurance company qualified to do business in California and rated by the A.M. Best Company as general policyholder’s rating of “B” or better in Best’s Insurance Reports. We will also accept coverage from the California FAIR plan if it is the only coverage that can be
