Why is my mortgage company forcing me to buy insurance on my home?

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stated other responders, lender wants make sure collateral covered damages. 1 other type of insurance lender requires private mortgage insurance, or pmi. coverage doesn't cover or home @ all. insures lender against default on loan. pmi required time have less 20% equity in home, if case, pay loan down less 80% of home's value save expense. also, keep in mind it's in lender's best interest have pmi in place, won't cancel until tell them so.

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