Homeowner’s Insurance Information and Requirements

Prime Mortgage will require that you have a homeowner's insurance policy in effect at the time of closing. The policy should meet the following criteria:

COVERAGE
Prime requires homeowner's insurance coverage for no less than the loan amount OR the current replacement cost of the improvements. When replacement cost coverage is less than your loan amount, Prime strongly encourages that you obtain a replacement cost guarantee. You must provide fire and extended coverage, including vandalism and malicious mischief.

DEDUCTIBLE
The deductible must not exceed 5% of the face amount of the policy.

EFFECTIVE DATE
The effective date of the policy should be the closing date of your mortgage.

INSURANCE CARRIER
The insurance carrier is required to have a Best's Key Rating Guide of Class A- VI or better.

MORTGAGEE CLAUSE
The mortgagee clause on the homeowner's insurance policy should read:

The Business Bank, dba Prime Mortgage Its successors and/or assigns
11100 Wayzata Blvd, Suite 200, Minnetonka, MN  55305
Fax Number: 612-677-3648

• The homeowner's insurance policy OR a binder showing that the policy is in effect as of the date of closing. (If a binder is brought to closing, please be advised that the policy should be sent to the above address.)

• For Condo transactions, Separate HO6 policy is required. Dwelling coverage for individual unit must be 20% of appraised value.

• For purchase transactions, a one year paid receipt is also required.

• For refinance transactions, please provide evidence that your present policy is paid to the renewal date.

(It is to your benefit to see that these requirements are met, as your closing may be delayed if proper insurance has not been obtained or verified.)