HELOC on Primary - Insurance Question

[Buckner Toney]

Hello BPers,

I am currently going through the underwriting on a HELOC on my primary residence to have additional funds available for down payments, all cash purchases, etc. I've been back and forth with my insurance provider and the underwriters from the institution I am using for the HELOC. The HELOC provider has requested that I have my insurance provider submit a statement saying the property is "insured for the maximum allowable amount." My insurance provider has stated they will not do this, they issue policies for replacement cost to rebuild in case of a total loss and have provided their replacement estimates which match to the amount of insurance coverage in the policy.

I am kind of at a loss as to what to do or provide further. I'd rather not punt the insurance provider as I have a had a good relationship with them, but at the same time, don't want to have to start the HELOC process over again with another bank given the time already spent getting this far (this is supposedly the final hurdle before approval.)

Any ideas or people that have run into this before? A search of past topics didn't really hit on anything.

[Carson T.]

Have you tried directly connecting your insurance guy to your Heloc guy via email or phone and letting them figure out what each other needs? They both have a vested interest in keeping your business. I had some insurance hang up when getting my Heloc funded a few months back and once I got both sides talking directly to each other and eliminating myself as the middle man it seemed to work itself out pretty quickly.