{"id":369399,"date":"2016-04-04T10:47:24","date_gmt":"2016-04-04T15:47:24","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/realestate\/owning-a-home\/home-insurance-regulation.html"},"modified":"2023-12-04T11:25:01","modified_gmt":"2023-12-04T16:25:01","slug":"home-insurance-regulation","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/realestate\/owning-a-home\/home-insurance-regulation.html","title":{"rendered":"Home Insurance Policies and Regulation"},"content":{"rendered":"\n
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Home Insurance Policies and Regulation<\/h1>\n
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\n By Robert Rafii, Esq.<\/a> | Legally reviewed by Aisha Success, Esq.<\/a>\n | Last reviewed\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

Buying real estate can be an overwhelming experience. Once the ink dries on the closing documents and your stuff is moved in, you still have to get situated and make the house a home. Then there’s the additional living expenses that you have to deal with, including insurance premiums.<\/p>\r\n

One of the first things you’ll have to decide is which type of insurance to purchase. Certain types of coverage are mandated by state law or required as a condition to getting a mortgage. Other property insurance policies may be helpful even if not required by law or mortgage contract.<\/p>\r\n

This article focuses on home insurance regulation and insurance requirements as a condition for getting a loan. See Does Homeowner’s Insurance Cover Natural Disasters?<\/a> and Home Insurance Coverage Issues In-Depth<\/a> for more information.<\/p>\r\n

How Is Home Insurance Regulated?<\/h2>\r\n

No federal regulatory agency exists to monitor insurance companies. Instead, companies selling insurance are regulated by individual state agencies. These state regulatory groups are designed to ensure that insurance companies are viable. That means making sure the ones operating in the state have the financial ability to pay out claims.<\/p>\r\n

A state regulatory agency is empowered to take action against an insurance company, with the office in each state listed here<\/a>. For example, a company that fails to conduct its business in a financially sound manner may be fined. The state can even prohibit the company from doing business in the state.<\/p>\r\n

Most states have laws regarding the conduct of insurance businesses. This is to ensure lawfulness and fairness to insurance applicants and policyholders. To ensure that insurance companies are compliant, state agencies can:<\/p>\r\n