Effective earlier this year, when financing a condo, lenders must verify there is INTERIOR insurance on the unit.  Usually the condo association provides for the exterior insurance.

Lenders don’t escrow for that interior insurance, (collect a portion up-front at the closing) but they need to verify that it is in place at the time of closing.

Prior to this time, lenders would let the owner decide if they wanted to buy insurance or not. The type of Insurance would be almost identical to renter’s insurance and would cover the home owner’s belongings and improvements to the interior of the condo.

Ask your favorite Insurance Agent for details on both home owner and condo owner insurance.