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Saving, Managing Debt, and Budgeting

Mortgages

Why do mortgage companies, banks, and finance companies require homeowner’s insurance?

Mortgage companies, banks, and finance companies require homeowner’s insurance because they technically own your home, and want to be sure they get paid for the mortgage loan plus interest, even in the event the house burns down. The insurance will cover the costs to replace the house, and ultimately the homeowner will be able to continue to pay the mortgage or sell the house.



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