Q: Exactly what kind of property insurance is required by law if I have a mortgage? Every year or two, the requirements and costs seem to go up, and now the amount of coverage my lender wants is out of line with the value of my home. Also, can the lender force me to include the insurance payment with my monthly mortgage payment?

A: When you borrowed the money from the bank, you contractually agreed to maintain insurance on the property. If you fail to keep the required insurance, your lender can take legal action against you and even can foreclose. re required to have enough insurance to pay off the mortgage in the event of a total loss. 

Most mortgages require the borrower to pay the monthly portion of the insurance to the lender along with the mortgage payment. The insurance portion is held in a special escrow account and paid to the insurance company annually.

-- Tribune News Service