Adequate Hazard Insurance Coverage Condos

[Karen Borgesi]

Good afternoon.

Polling the group to see how you’re determining adequate hazard insurance coverage for condos, and if any of you have ever force placed for inadequate coverage? We received a recent audit finding that the hazard insurance in place by the HOA is the replacement cost value and therefore deemed inadequate based on the fact we informed our borrower the required coverage must be for the full loan amount. The suggestion was to force place the difference.

Thank you in advance,
Karen

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