Lenders Now Requiring Condo Purchasers to Obtain Additional Insurance

From Ryan Dailey at Prosperity Mortgage (a subsidiary of Wells Fargo):
"NEW AND ADDITIONAL INSURANCE REQUIRED FOR ALL (attached) CONDOMINIUM UNITS - The standard coverage provided by the condo association for replacement cost coverage will still be required, however, additional replacement cost "walls in" coverage must be purchased and provided by the borrower. In LIMITED cases, the condo project insurance MAY provide this coverage, but this is likely to be the exception, rather than the rule. Many other Lenders have already instituted this, and many of you have asked if Wells was adding this requirement - they are, effective with all application dates of 7/1."

Lenders used to recommend that condo owners purchase additional insurance and now it is going to be a requirement for most lenders. The coverage is very affordable and a good idea to have anyway!