Question:

What are the minimum standard hazard insurance requirements?

Answer:

According to standard hazard insurance requirements, you will be required to get hazard insurance at the time of closing a mortgage, and your standard hazard insurance policy should be large enough to cover the replacement cost of your house and cannot be less than the outstanding loan balance.

Other hazard insurance requirements will demand that the insurance company be properly certified and the insurance premium will be 1 or 2 percent of the policy amount; the deductible usually will not be less than $250. The deductible hazard insurance requirement may apply to flood, fire, and other common disasters or extended insurance coverage.

Hazard insurance premiums may be discounted if you buy a higher deductible - starting at $500 and usually limited to $10,000. If you are the proud owner of a luxury residence home, you may like to get higher deductible for your home and will have to check if your hazard insurance company offers deductibles beyond the common $10,000 limit.

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