Insurance Closing Costs
This insurance covers replacement costs for damages caused by fire, wind, theft, or other disaster's that might affect the value of the property. Typically, the insurance also includes personal liability and theft coverage.
Insurance required for conventional mortgage loans when the borrower's down payment on the house is less than 20 percent of the loan value.
This policy protects both the buyer and lender by insuring a clear chain of title. (In other words, it insures that that the person who sells the house has the legal right to do so.)
