Forum Archive: Posts by: karencath

We are in the process of buying a house in Red Hook, and are shopping for home insurance. The mortgage commitment requires “hazard insurance with extended coverage in an amount no less than $x” (x being our loan amount). The same paragraph states that “the amount of coverage need not be in excess of the replacement cost of the improvements on the property securing the loan.” (we are financing this with a 203K loan).

We have talked to several insurance agents here in Brooklyn, and the quotes we are getting are pretty high. The agents have all asked if the mortgage company will accept the “replacement cost” instead of the loan amount, and we are investigating that now. I guess I’m wondering if this all sounds standard? And also if anyone in Red Hook or the vicinity has a recommendation for an insurance agent who won’t comment on how difficult it will be to get a policy on a house “so close to the water”.

Thanks!