Can anyone share their loan policy's insurance requirements regarding property securing home equity loans. How would one go about getting the replacement cost of the property insured. Is it automatically determine by the insurance companies when the borrower has elected replacement cost coverage and would that sufficiently cover replacement cost or does a separate valuation need to be determined? Our policy reads: "The amount of coverage is to be in the amount of our loan blance plus the balance of any other mortgage balance or the replaccement cost of the structure, whichever is less." We also do not use any for such as LaserPro's "Amount of Required Insurance". Is there any negatives to not using this form or any other form to detail our hazard insurance requirements of the borrower? No commitment type letters are issued upon loan approval.