What type of insurance coverage is required?
Full coverage homeowners insurance with Vanderbilt Mortgage and Finance, Inc. listed as loss payee is required at all times while you have a loan with Vanderbilt. Please note that some states require a separate policy to protect against wind/hail damage.
Homeowners coverage should provide coverage for the current value of your home and improvements. This amount may differ from your existing loan balance. Vanderbilt may accept a policy with coverage less than the loan balance if your loan includes financed non-insurable items such as land or land improvements. However, in the event of total destruction of your property, the amount of your insurance settlement may not be sufficient to pay off your obligation to Vanderbilt. We suggest you consult an insurance agent of your choice regarding type and amount of coverage based on your individual needs.