Escrow & Title
In Montana, a 'hazard insurance' requirement by a mortgage lender means the borrower must maintain:
ALife insurance equal to the loan amount
BHomeowner's insurance (property insurance) covering the improvements for at least the outstanding loan balance✓ Correct
CFlood insurance regardless of location
DTitle insurance on the property
Explanation
Mortgage lenders require 'hazard insurance' (homeowner's property insurance) to protect their collateral. The policy must cover the property's improvements for at least the loan amount, and the lender is typically named as a mortgagee/loss payee.
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