Homeowners Insurance Requirements for Greenwood, Indiana Mortgage Lenders
- Nate Jones, CPCU, ARM, CLCS, AU
- Dec 31
- 2 min read
If you’re purchasing a home in Greenwood, Indiana, your mortgage lender will require homeowners insurance before closing. But what exactly do lenders expect? Understanding these requirements can help you avoid delays and ensure your home is properly protected.
At Wexford Insurance, we work with Greenwood homeowners every day to meet lender requirements and secure affordable coverage. Here’s what you need to know.
Why Do Mortgage Lenders Require Homeowners Insurance?
Mortgage lenders want to protect their investment—your home. If your property is damaged by fire, storms, or other covered risks, insurance ensures repairs are paid for, safeguarding both you and the lender.
Minimum Coverage Requirements
Most lenders in Greenwood, Indiana require:
Dwelling Coverage: Enough to cover the replacement cost of your home, not just its market value.
Hazard Coverage: Protection against common risks like fire, wind, hail, and theft.
Liability Coverage: Typically at least $100,000, though higher limits are recommended.
Deductible Limits: Some lenders cap deductibles to prevent excessive out-of-pocket costs.
Tip: Flood insurance is not included in standard homeowners policies. If your home is in a flood zone, lenders will require a separate flood policy.
External Resource: FEMA Flood Insurance Information
Proof of Insurance Before Closing
Your lender will require an insurance binder or declarations page before closing. This document shows your coverage details and confirms the policy is active.
Additional Requirements for Greenwood Homes
HOA Requirements: If your home is in a Greenwood HOA community, check for additional insurance rules.
Escrow Accounts: Many lenders include insurance premiums in your monthly mortgage payment through escrow.
How to Make Sure You’re Covered
Meeting lender requirements doesn’t have to be stressful. At Wexford Insurance, we compare quotes from multiple carriers to ensure you get the right coverage at the best price—fast.
Get Your Free Homeowners Insurance Quote Today
Ready to secure your coverage and close on your Greenwood home?
Click here to get a free homeowners insurance quote from Wexford Insurance or call us at 317-910-9295. Our local experts will make sure you meet all lender requirements and save money in the process.
