Finance
In Michigan, lender-required hazard (homeowners) insurance protects:
AThe borrower's personal liability only
BThe property (collateral) against physical damage such as fire, wind, and certain other perils, protecting both owner and lender✓ Correct
COnly the lender's interest, not the homeowner
DOnly flood damage
Explanation
Hazard/homeowners insurance covers physical damage to the property from covered perils (fire, wind, hail, etc.), protecting the homeowner's and lender's financial interests in the real estate collateral. Most Michigan lenders require it.
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