06-15-2009, 02:57 PM
Laurie, I don't believe the State of Hawaii mandates insurance on the property, (one of the real estate agents probably can advise on this). But your lender can mandate insurance coverage as a condition of the loan. Some lenders require coverage on the value of the property, others the balance of the loan. Some may want full coverage, others just so they get paid what is owed if something happens. Some want coverage for the full value of the property while others for the value of the structure because land is still land regardless.
This is between you and the lender and is one of the factors in picking a lender. Just like you look at interest rates, length of loan, prepayment penalties; insurance requirements is another factor that, unfortunately, many consumers don't even think about and end up having to provide something they didn't anticipate.
This is between you and the lender and is one of the factors in picking a lender. Just like you look at interest rates, length of loan, prepayment penalties; insurance requirements is another factor that, unfortunately, many consumers don't even think about and end up having to provide something they didn't anticipate.