I believe you can follow the same review process with property insurance as you do with flood insurance. Every year when the property insurance is renewed, the policy should be reviewed to ensure that the amount of coverage is sufficient to cover the amount of the outstanding loan. If the amount is not sufficient, I would not pay the property insurance bill without contacting the consumer and requesting they either (1) increase the coverage or (2) the FI will force place insurance for the total amount of the outstanding loan balance.
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The opinion stated here is what it is, My Opinion.