If you have a mortgage, your lender requires you to keep the home insured. When standard insurers say no, a FAIR Plan policy can often meet that requirement — but it's important to check the details.
What lenders typically look for
- Enough dwelling coverage to meet the lender's requirements
- Your lender listed as mortgagee on the policy, so they're notified of changes
- A deductible within the lender's limits
- Continuous coverage with no gaps
Requirements vary by lender and loan type, so ask your lender for their insurance requirements in writing.
Need a FAIR Plan policy that meets your lender's requirements? We'll help you set it up correctly.
Call (888) 928-9324How to show proof of coverage
Your lender will usually ask for the policy's declarations page or an evidence of insurance document. Your agent can send it directly to the lender for you.
Flood may be required too
FAIR Plans don't cover flood. If your home is in a high-risk flood zone and you have a federally backed mortgage, your lender will require separate flood insurance. Read more: Do you need flood insurance if you have a FAIR Plan?
What happens if coverage lapses
If your coverage lapses, your lender can buy force-placed insurance and add the cost to your mortgage payment. It usually costs more and mainly protects the lender. Keeping a FAIR Plan policy in place avoids that.