Finance
Iowa's homeowner's insurance is typically required by mortgage lenders because:
AIowa law mandates homeowner's insurance for all properties
BLenders require insurance to protect their collateral (the property securing the loan) against casualty losses✓ Correct
CThe IREC requires proof of insurance before closing
DTitle companies require insurance as part of the abstract process
Explanation
Mortgage lenders require borrowers to maintain hazard insurance (homeowner's insurance) to protect the lender's collateral. If the property is destroyed, insurance proceeds enable the loan to be repaid. Lenders are named as loss payees on the policy.
Related Iowa Finance Questions
- Iowa's adjustable-rate mortgage (ARM) caps limit which of the following?
- A balloon mortgage in Iowa requires the borrower to:
- Iowa's 'equity of redemption' allows a mortgagor (borrower) to:
- Iowa's Construction to Permanent loan is a financing product that:
- Iowa's Iowa Homebuyer Education program, often required for certain loan programs, teaches prospective buyers about:
- Iowa's owner-financing (seller carry-back) arrangement requires the parties to:
- Iowa's Uniform Land Transactions Act (ULTA) or comparable Iowa statutes affect real estate finance by:
- The Iowa Finance Authority (IFA) First Home Program provides:
Practice More Iowa Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Iowa Quiz →