Insurance requirements have changed and it is important to know what most lending institutions will mandate for your closing. Here are some tips from Connecticut Insurance Services:
1. Prior to closing, you will be required to provide an insurance binder (evidence of insurance) and a paid receipt (evidence that the first full year premium has been paid).
2. The insurance binder must show that the dwelling is equal to the amount of the mortgage. If the dwelling coverage on the binder is less than the mortgage amount, the binder must reflect extended replacement cost coverage without limit or extended replacement cost equal to or greater than the mortgage.
3. The insurance binder must reflect that the insurance coverage is provided through an insurance carrier with an AM Best Co financial rating of A- or better.
4. If your property is in the 100-year Flood Plain, you will be required to provide evidence of flood insurance prior to your closing. A Flood Zone determination is readily available from our insurance company, Connecticut Insurance Services.
