Taxes and Insurance

Modeled elevation reached by the flood having a 1-percent chance of being equaled or exceeded in any year.

Insurer notice that homeowners coverage will terminate on a stated date before the policy's scheduled expiration.

FEMA form documenting a building's location, characteristics, and elevations for flood insurance, mapping, and floodplain review.

Mortgage account arrangement that collects part of a required flood premium with monthly payments and pays the insurer when due.

FEMA map designation classifying an area's modeled flood hazard for mapping, insurance, and mortgage review.

Federal requirement for adequate flood coverage on certain mortgage-secured buildings located in special flood hazard areas.

FEMA-administered program providing flood insurance and floodplain-management standards in participating U.S. communities.

Insurer notice that homeowners coverage will not continue after the current policy period expires.

Flood coverage issued by a private insurer and evaluated by the mortgage lender under federal, agency, and investor acceptance rules.

Standard federal form lenders use to document a mortgaged building's FEMA map and special flood hazard status.

Homeowners policy component covering the main residential structure against insured physical damage.

Recoverable depreciation is an amount withheld from an initial replacement-cost claim payment that may be paid after repair or replacement conditions are met.

Insurance estimate or loss-settlement basis using current repair or replacement cost without ordinary depreciation deduction.

Property insurance form covering direct physical loss unless the cause is excluded, often used to satisfy mortgage-investor peril requirements.

PITI stands for principal, interest, taxes, and insurance, a common shorthand for the core monthly housing payment components.

Approved reduction or credit that lowers a property's tax bill and can change mortgage escrow projections.

Formal challenge to a property's assessed value or tax classification that may change future bills and escrow.

Past-due property taxes that can trigger penalties, liens, closing conditions, and mortgage-servicing action.

Property-tax benefit for eligible owner-occupied homes that may affect tax bills and escrow estimates.

Official statement of property taxes due, used for mortgage qualification, closing adjustments, and escrow servicing.

Targeted public or association charge that can affect closing funds, title review, qualification, or future housing cost.

Jurisdiction-specific property-tax record that may confirm payment status or represent an interest in delinquent taxes.

Local authority that receives property taxes and confirms payment status for closing and escrow servicing.

Scheduled portion of a property-tax obligation that affects escrow timing, prorations, and closing calculations.

Insurance loss-settlement value that generally reflects replacement cost after depreciation is considered.

An additional interest is a party listed on an insurance policy because it has a financial or notice interest without necessarily being insured.

Conventional PMI for which the borrower pays a separately identified premium, often monthly but sometimes through another premium plan.

Coverage A limit for the home's main structure, reviewed against rebuilding cost and mortgage property-insurance requirements.

Date and time homeowners coverage begins, used to verify protection at closing and continuity during policy changes.

Claim amount the homeowner must absorb before covered property insurance pays, subject to the policy's terms and loss type.

Mortgage escrow collection and servicer payment of homeowners insurance premiums as part of the borrower's total monthly payment.

Actual or apparent gap in required homeowners coverage that can trigger servicing notices and force-placed-insurance action.

Continuation of homeowners coverage into a new policy period with updated dates, premium, limits, and mortgage information.

Party designated to receive or participate in insurance proceeds for covered property in which it has a financial interest.

Property-tax rate stated in mills, with each mill generally equal to one dollar per $1,000 of taxable value.

Mortgage-insurance premium collected with each monthly payment rather than mainly through an upfront or pricing-based structure.

Insurance that reduces lender risk on higher-leverage mortgages while adding an upfront cost, monthly cost, or pricing tradeoff for the borrower.

Person or entity identified as an insured policyholder with rights and duties under the homeowners insurance contract.

Property coverage for specified demolition, undamaged-property loss, and increased construction costs caused by current building rules.

Span from a homeowners policy's effective date through its expiration date during which coverage is in force.

Evidence showing a mortgage lender or servicer that required property coverage exists and matches the home, borrower, dates, and loan.

Conventional mortgage-insurance plan funded with one lump-sum premium at closing instead of a standard monthly premium.

Conventional PMI plan that combines a smaller premium at closing with a reduced recurring monthly premium.

Additional local property-tax bill issued outside the regular bill after a qualifying value or ownership event.

Local government valuation process used to establish a property's assessed or taxable value for property-tax purposes.

Closing credit or debit that allocates a property-tax period between buyer and seller according to ownership timing.

Required property coverage for wind and named-storm damage when the primary homeowners policy includes, limits, or excludes that peril.

Split insurance structure combining condominium association master coverage with the unit owner's HO-6 policy.

Association-level property insurance covering condominium buildings and common elements according to the policy and governing documents.

FEMA's official community map showing special flood hazard areas, flood zones, and other information used in mortgage flood review.

Lender's documented check of whether a building securing a mortgage is located in a FEMA special flood hazard area.

Separate property coverage for flood damage that may be optional by owner choice or mandatory under mortgage and federal lending rules.

Condominium unit-owner policy covering specified interior property and personal risks alongside the association master policy.

Price of homeowners coverage that affects closing cash, escrow collection, and the borrower's total monthly housing payment.

FEMA letter establishing that an existing structure or parcel on natural ground is not located in the mapped special flood hazard area.

HO-6 coverage that may pay certain association assessments arising from a covered loss or master-policy deductible.

Property taxes are local taxes assessed on real estate that borrowers often pay through the monthly mortgage escrow process.

FEMA-mapped area subject to the 1-percent-annual-chance flood and central to mandatory mortgage flood-insurance rules.

Mortgage-servicing arrangement that collects part of expected property taxes with each payment and pays bills when due.

Informal condo-insurance term for interior unit property that falls outside or alongside the association master policy.

Ongoing FHA mortgage-insurance charge assessed at an annual rate and normally collected in monthly installments.

Policy summary showing the insured home, coverage limits, deductibles, premium, dates, and mortgagee information.

Lender-facing term for property insurance against required physical-loss perils affecting the home that secures a mortgage.

Property insurance a mortgage lender requires to protect the home, with broader policy coverage that also serves the homeowner.

Temporary evidence that homeowners coverage has been bound while the insurer prepares the final policy documents.

Private mortgage insurance paid to the insurer by the lender, with the cost usually recovered through a higher rate or other loan pricing.

FHA mortgage-insurance cost made up of an upfront premium and an ongoing annual premium normally collected monthly.

Property-insurance provision identifying the mortgage holder and protecting its secured interest in the insured home.

Private insurance used on certain conventional mortgages to reduce lender risk when the borrower has a smaller equity contribution.

Rules and servicing steps for ending eligible borrower-paid conventional PMI through request, automatic termination, or final termination.

Mortgage-related property taxes, insurance requirements, and premiums that affect approval, closing cash, and monthly housing cost.

One-time FHA mortgage-insurance charge paid at closing or commonly financed into the mortgage balance.