On Fri, 28 Jul 2006 21:55:51 -0700, Joshua Putnam
wrote:

In article ,
says...

Both will explain that your property
insurance has no bearing on any sale of the house
to another party. (His mortgage-worthiness depends
on his credit history, not your insurance.)

If the buyer is unable to insure the house for at least the lesser of
balance of the loan or the replacement cost of the home, then the bank
generally won't accept the mortgage.

e.g. if a home is selling for $400,000, with a $350,000 mortgage and a
replacement cost of $300,000, the lender will generally require
insurance of at least $300,000 replacement cost.


I don't think so and here's why but good question by the OP.
Hint: think about this as if you were the lender !

The " lender " will want to make sure the insurance covers the loan
balance (the net amt. of money he loaned you) and doesn't care about
the market value or replacement value of the home. Of course, the
homeowner might.

This brings up some other questions but I won't get into it here.

// doug //
website: MyHomeRebate.com
"Buy New Homes for Less in Texas"