> ## 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.

# Homeowners Insurance Policy for Subject Property

> Provide the current homeowners insurance policy for the subject property to support [PITIA](/entity-models/key-concepts/piti) calculations and collateral protection.

## What this task is

This task collects the **current homeowners insurance policy or declarations page** for the **subject property**, when a specific property has been identified.
The policy should show:

* The **property address**,
* **Coverage limits and types**,
* The **policy term**, and
* The **annual or monthly premium**.

## When this task is required

This task is required when:

* The borrower has **identified a subject property**, and
* The property type requires **individual homeowners coverage** (for example, a detached single-family home or similar non-condo property), and
* The loan is being underwritten with **PITIA-based affordability** considerations (see [PITIA](/entity-models/key-concepts/piti)).

It typically applies to both **purchase** and **refinance** transactions.

## Why this task is required

Homeowners insurance is a core component of **PITIA** (see [PITIA](/entity-models/key-concepts/piti)) and vital to **collateral protection**:

* The premium must be included when calculating the borrower’s **monthly housing expense**.
* Adequate coverage protects the property—and by extension the lender—against **damage or loss**.

The insurance policy allows the underwriter to:

* Confirm that the property is **properly insured** in accordance with program and investor guidelines.
* Validate the **premium amount** so the total housing payment is calculated accurately.

Without this documentation, the lender may need to rely on **estimates**, which can lead to inaccurate [DTI](/entity-models/key-concepts/dti) calculations and potential **compliance issues**.

## Documents needed to resolve this task

To satisfy this task, provide:

* The **current homeowners insurance declarations page or policy** for the subject property:
  * Showing **named insureds**, **property address**, **coverage limits**, **deductibles**, and **policy dates**.
  * Clearly stating the **premium amount** or enough information to derive it.
* If the policy is being newly obtained for a **purchase**, provide:
  * The **binder or preliminary declarations** from the insurer that will be in effect at or before closing.

These documents allow the underwriter to verify that the **subject property is adequately insured** and to properly incorporate the insurance cost into **PITIA** (see [PITIA](/entity-models/key-concepts/piti)).