A row of beautifully colored homes.

Homeowners Hazard Insurance


The property securing each mortgage must, as a minimum, be covered by hazard insurance meeting the following requirements:


Policies generally should be for a period of at least one (1) year.  Insurance must be in effect on the date of loan closing.


The buildings and improvements upon the mortgaged premises need to be insured against loss or damage by fire, with extended coverage, and from such other insurable hazards and risks as is customary in the locality where the mortgaged premises are located and such other hazards or risks as the Board may in its discretion require for its protection.

Such policies shall be written by a company licensed to do business in the State and shall be in amounts specifically designated by the Board or, if not so designated, in amounts at least equal to the lesser of the full insurable value of the premises or the unpaid principal balance of the Mortgage Loan; provided, however that such insurance shall pay in full the amount of any partial or total loss to the full amount of such insurance and shall otherwise be sufficient to prevent the Mortgagor from being a co-insurer


The deductible for hazard insurance on such policies shall not exceed $1,500 or 1% of the principal balance of the loan and the deductible for flood insurance, if applicable, shall not exceed $1,500 or 1% of the principal balance of the loan. (The deductible on townhouse and condominium policies must not exceed $1,500 per unit.)

Insurance Carriers: 

As well as being qualified to do business in the state of Montana, need to ensure a policy or policies of insurance which will cover errors and omissions in the handling of the insurance coverage.  The policy must be written in such amount required by FHA, VA, RD or HUD, as applicable, but in any event not less than $300,000.

The mortgage clause on the policy shall contain a standard mortgagee clause endorsed in favor of:

Montana Board of Housing
Attn: Mortgage Servicing Department
PO Box 200550
Helena, Mt 59620-0550




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301 S. PARK AVE, STE 240 | PO BOX 200528 | HELENA, MT 59620-0528 | P: 406.841.2840 | F: 406.841.2841 | TDD: 406.841.2702 | TOLL FREE: 800.761.6264