Property Insurance Requirements for 1-4 Family Properties

Coverage Requirements

Property insurance policies for one- to four-unit properties securing loans closed and funded by Homium should be written on a "Special" coverage form or equivalent. At a minimum, the coverage must include the perils listed in the following table.

	Fire or lightning
	Explosion
	Windstorm (including named storms designated by the U.S. National Weather Service or the National Oceanic and Atmospheric Administration by a name or number)
	Hail
	Smoke
	Aircraft
	Vehicles
	Riot or civil commotion

If a property insurance policy excludes or limits coverage of any of the required perils, the borrower must obtain an acceptable stand-alone policy that provides adequate coverage for the limited or excluded peril (see Additional Insurance Requirements, for additional information).

The property insurance policy must provide for claims to be settled on a replacement cost basis. Property insurance policies that provide for claims to be settled on an actual cash value basis are not acceptable.

Additional requirements apply to properties with solar panels that are leased from or owned by a third party under a power purchase agreement or other similar arrangement. See Special Property Eligibility Considerations, for additional requirements.

See Mortgagee Clause, Named Insured, and Notice of Cancellation Requirements for additional requirements applicable to a one- to four-unit property.