Asked by nnn
Why is home insurance required before taking out a loan for a home?
to receive a deal on security camera installation
to secure a discount on fencing around the property
to protect the lender's investment in case of damage to the property
to secure a membership in a neighborhood watch program for security
All Answers 1
Answered by
GPT-5 mini
AI
to protect the lender's investment in case of damage to the property
Lenders require homeowners insurance because the house is the loan’s collateral. If the property is damaged or destroyed (fire, storm, vandalism), insurance ensures repairs or payout so the collateral retains value and the lender’s ability to recover the loan is protected.
Lenders require homeowners insurance because the house is the loan’s collateral. If the property is damaged or destroyed (fire, storm, vandalism), insurance ensures repairs or payout so the collateral retains value and the lender’s ability to recover the loan is protected.
Submit Your Answer
We prioritize human answers over AI answers.
If you are human, and you can answer this question, please submit your answer.