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Refinance Condo Insurance

Started by js23411
over 16 years ago
Posts: 4
Member since: Apr 2009
Discussion about
I am in the process of refinancing my condo with Citi. My current mortgage (5 years into a 30 year) is also with Citi The underwriters say that I need to increase my dwelling coverage from 106k to $240k When I called my insurance company they told me that $240k is excessive for a condo and that my premium will double Is it common to demand more insurance on a refi? Has anyone had any success getting their bank reconsider such a request?
Response by jjmn31
about 16 years ago
Posts: 1
Member since: Oct 2009

Yes it is common, I am seeing alot this lately. Keep in mind your condo needs to be insured from the four walls in, you own it all. The coverage level formt he insurance standpoint it dictated by the square footage. ie 1000 square feet in a higher end NYC location your are looking at realtistically needing approx $300K in coverage ($300 per sq foot give or take). Banks are requiring 20%the appraised value. Hope that helps! I am a broker if you need any help :)

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Response by fivemznyc
about 16 years ago
Posts: 6
Member since: Mar 2007

This is per the new tightening of FNMA condo insurance guidelines.

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