Why do servicers review insurance deductibles?
Servicers review deductibles to ensure they are reasonable and do not expose the borrower or Freddie Mac to excessive financial risk. High deductibles may limit the effectiveness of coverage and could affect the borrower’s ability to repair the property after a loss.
Related FAQs
- Can a property be insured for less than the loan amount?
- Can a borrower change insurance providers during the loan?
- Why do servicers require flood insurance escrow?
- Why do servicers need proof of insurance renewals?
- Can insurance claims affect escrow?
- Why do servicers require updated hazard insurance declarations?
- Why is hazard insurance required?
- Can borrowers choose their insurance provider?
- Why do lenders require flood zone verification?
- What is lender‑placed insurance?
- What is mortgage insurance (MI)?
- Can mortgage insurance be removed?
- What happens if insurance coverage lapses?
- Why does Freddie Mac require proof of insurance?
- Why is homeowners insurance required?
- Is flood insurance required?