What type of dwellings are these, 1-4, condos, cooperatives, etc.?
If condos refer to 226.35(b)(3)(ii)(B).
They carry a personal property insurance policy (“contents”), but it doesn’t have any dwelling coverage. The policy that is paid through the HOA dues covers “everything but betterments, improvements, and contents”.
This doesn't compute. Does it or does it not cover contents?
You have every right to require insurance to protect your security interest which may include requiring your borrower to get a unit owner's policy.