UPDATED HOMEOWNER’S INSURANCE GUIDELINES
Effective immediately for all products, REMN has adjusted our requirements for Homeowner’s Insurance to provide an additional (easier to meet) option for determining the property’s insurable value. This guidance applies to both new and existing loans in the pipeline. The requirement is as follows:
Coverage must be the lesser of (1) and (2), described below:
(1) 100% of the insurable value of the improvements as established by:
- the appraiser (“Indicated value by cost approach” minus “site value” from the Cost Approach section of the appraisal) – OR –
- the property insurer (Cost Estimator).
(2) The unpaid principal balance, as long as it equals 80% of the insurable value of the improvements. If the amount of coverage does not meet the minimum requirement, additional coverage must be obtained.
If you have any questions, please contact your AE.