When home owners or a potential home owner for that matter is looking to either purchase a house, refinance their house, or take out a second mortgage on their home then they are required to get home owners insurance on their property. All lending institutions require that a borrower have home owners insurance on their home. Depending on the area of the country that you may live in the requirements of insurance that you may need may differ from somebody else in another area of the country.For example, if your place of residence is in the southeast, such as Florida or Georgia, then you would need have home owner insurance that protects your home from hurricane damages and/or destruction along with fire insurance, which is required no matter where you live. Another example would be if you live in Southern California then you most likely would need to have some kind of earthquake insurance, which would cover your home from damages sustained from an earthquake. Home in the Midwest part of the country would have to have insurance that would protect them from tornado destruction. Another thing to consider when buying a home is whether or not the home is located near water, such as the ocean, a lake, or a river. If the home is situated near some sort of water mass then it may be located in a flood zone, which would require that the land owner obtained flood insurance in their home owner insurance policy.The home owner insurance policy that you have on your home must be enough to cover the amount of the outstanding mortgage loans that you have on your home. For example if you have one loan on your home that is $100,000, then your home owner insurance policy should be at least worth that amount. If you were to have a second mortgage on the home then the amount of insurance that you should have should total the two mortgages together. If you had a second mortgage on your home for let’s say $30,000 on top of the existing mortgagee of $100,000 then the home owner insurance policy should worth at least $130,000.All mortgage lenders require that you have a policy that at least covers the amount of the loans in which you applied for. If you can not show proof of an insurance policy at the time of your closing then the lending institutions will not allow you to close on the loan. Lending institutions are very specific on how they want you to have them listed on your home owner insurance policy. They require that you have your insurance company list them by their name and the address in which their company is located listed on the policy. If you have two mortgages on your home then the lending institution must be listed twice on the policy. In many cases a borrower may have two loans with two different companies. If that is the case then the lender which you have your first mortgage would be listed first on your policy and the lender that you have your second mortgage or home improvement loan would be listed second on the home insurance policy.