Q. Can a mortgage company require the amount of insurance on a homeowner’s policy to be the same as the loan amount?
A. A lender may not require a borrower to purchase homeowners insurance coverage, mobile or manufactured home insurance coverage, or other residential property insurance coverage in an amount that exceeds the replacement value of the dwelling and its contents, regardless of the amount of the mortgage or other financing arrangement entered into by the borrower. A lender may not include
A lender may not include market value of the land on which a dwelling is located in the replacement value of the dwelling and its contents. For the actual statute in the Texas Insurance Code, see Sec. 549.0551