§ 6.1-2.6:1. Fire insurance coverage under certain loans not to exceed replacement value of improvement...
A. No lender shall require a borrower, as a condition to receiving or maintaining a loan secured by any mortgage or deed of trust, to provide or purchase property insurance coverage against risks to any improvements on any real property in an amount exceeding the replacement value of the improvements on the real property.
In this section, "property insurance coverage" means insurance against losses or damages caused by perils that commonly are covered in insurance policies described with terms similar to "standard fire" or "standard fire with extended coverage."
In determining the replacement value of the improvements on any real property, the lender may:
1. Accept the value placed on the improvements by the insurer; or
2. Use the value placed on the improvements that is determined by the lender's appraisal of the real property.
B. A violation of this section shall not affect the validity of the mortgage or deed of trust securing the loan.
(1989, c. 230.)
Sections: Previous 6.1-1 6.1-1.1 6.1-2 6.1-2.1 6.1-2.2 6.1-2.5 6.1-2.6 6.1-2.6:1 6.1-2.7 6.1-2.8 6.1-2.9 6.1-2.9:1 6.1-2.9:2 6.1-2.9:3 6.1-2.9:4 NextLast modified: April 2, 2009