Insurance.

CFR · 2024-01-01 · US · Title 7

(a) Borrower responsibility. Any borrower with a secured indebtedness in (b) Amount. The borrower is required to insure the dwelling and any other essential buildings in an amount equal to the insurable value of the dwelling and other essential buildings. However, in cases where the borrower's outstanding secured indebtedness is less than the insurable value of the dwelling and other essential buildings, the borrower may elect a lower coverage provided it is not less than the outstanding secured indebtedness. If the borrower fails, or is unable, to insure the secured property, RHS will force place insurance and charge the cost to the borrower's account. Force place insurance only provides insurance coverage to the Agency and does not provide any direct coverage or benefit to the borrower. The amount of the lender-placed coverage will generally be the property's last known insured value. (c) (d) (2) Customers must immediately notify RHS of any loss or damage to insured property and collect the amount of the loss from the insurance company. (3) Depending on the amount of the loss, RHS may require that loss payments be supervised. All repairs and replacements done by or under the direction of the borrower, or by contract, will be planned, performed, inspected, and paid for in accordance with 7 CFR part 1924, subpart A. (4) When insurance funds remain after all repairs, replacements, and other authorized disbursements have been made, the funds will be applied in the following ord

official document · source cfr-2024 · id 7:§ 3550.61