• LordCrom@lemmy.world
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    4 months ago

    No no, the bank doesn’t pick a 3rd part company, they will place insurance on the house, usually with a bank subsidiary or other kind of bank entity. Usually is only for replacement value of the house, not theft or anything. It’s placed to protect the bank only, and you pay.

    They don’t get a state farm policy… The bank gets a “this bank insurance company” policy.