> ## Documentation Index
> Fetch the complete documentation index at: https://docs.pylon.mortgage/llms.txt
> Use this file to discover all available pages before exploring further.

# Hazard Insurance for Owned Property

> Provide the current homeowners insurance policy for an owned property (other than the subject property) to support accurate housing expense and risk assessment.

## What this task is

This task collects the **current homeowners (hazard) insurance policy** for an **owned property other than the subject property**.
The policy should show **coverage details, effective dates, and the annual or monthly premium** for that specific property.

For underwriting, this document confirms that the property is **adequately insured** and provides the premium figure necessary to calculate **PITIA** (see [PITIA](/entity-models/key-concepts/piti)) for each owned property that will remain after closing.

## When this task is required

This task is required when the borrower owns an **additional property (primary, second home, or investment) other than the subject property**, and that owned property is **expected to remain** post-closing (not pending sale or already sold).

Typical use cases include:

* The borrower will **retain a departing residence** as a rental or second home.
* The borrower has a **portfolio of investment or REO properties** whose housing expenses must be included in underwriting.
* The underwriter needs to confirm the **true cost of ownership**, including insurance, rather than relying on estimates.

## Why this task is required

Hazard insurance information is critical because it:

* Completes the **PITIA calculation** (Principal, Interest, Taxes, Insurance, and, if applicable, Association dues) for each **owned property that will continue after closing** (see [PITIA](/entity-models/key-concepts/piti)).
* Helps verify that the property is **insurable and insured**, reducing risk of loss to both borrower and lender.
* Supports an accurate evaluation of the borrower’s **total housing expense across all properties**, not just the subject loan.

If the insurance details are missing or inaccurate:

* The lender may **underestimate ongoing obligations**, distorting the borrower’s **debt-to-income ratio**.
* There may be **unaddressed coverage gaps** that increase risk related to the borrower’s overall financial stability.

## Documents needed to resolve this task

To satisfy this task, provide:

* The **current homeowners insurance declarations page** (or full policy) for the owned property:
  * Showing **property address**, **coverage amounts**, **policy period**, and **premium amount**.
  * Identifying the **insured parties** and **insurance carrier**.
* If available, **billing or escrow statements** that confirm the premium amount and payment structure, especially if escrowed with a mortgage.

These documents allow the underwriter to confirm that the property is properly insured and to incorporate the correct insurance expense into the borrower’s housing obligations.