Thursday, October 28, 2021 03:08

Insurance Agent – Video2

Q. Why does the bank insist that fire insurance is in place before registering a mortgage?

A. The bank is mainly interested in protecting its own interest if you are putting 20 percent down and taking a mortgage for 80 percent then it means the bank owns 80 percent of your home. So obviously they have a very vested interest in making sure that the home is properly protected.  So when it comes time to close your home your lawyer is responsible not only for helping you with that but also for making sure that the mortgagee is protected under that home owners policy. The bank will want to make sure that you have a good quality policy in place protecting their asset as well at the time of closing before they’ll actually allow that home to close.