What are CalHFAs Hazard Insurance Requirements?
The insurer must be licensed to do business in the State of California and have a current Best’s Insurance Guide rating of BV1 or better. The policy must have a deductible of no more than $1,000 or 1% of the face amount, whichever is higher; or $2,000 or 2% of the face amount, whichever is higher, if wind coverage is included; and in an amount equal to, but not exceeding, the replacement value of the structural improvements with endorsements for code upgrades, or the outstanding principal balance, whichever is less.
