NEW BRUNSWICK · MORTGAGE

Mortgage and Home Insurance Requirements in New Brunswick

FCNB says home or property insurance is usually required as a condition of obtaining a mortgage and that most financial institutions will not provide a mortgage without proof of insurance. That is a lender requirement, not the same thing as a general provincial law requiring every homeowner to insure every home.

Risk is not coverage. Government hazard information describes exposure; only the current insurance contract determines whether a specific loss is covered, excluded or subject to a deductible or limit.
KEY FACTS
ProvinceNew Brunswick
TopicMortgage & Insurance
Source typePrimary official
Quote assumedNo

What to know

01FCNB says home or property insurance is usually required as a condition of getting a mortgage.

Use this as research context and verify the current policy wording for a real property, renewal or claim.

02Most financial institutions require proof that the property is insured before advancing a mortgage.

Use this as research context and verify the current policy wording for a real property, renewal or claim.

03A lender can impose coverage requirements beyond a homeowner's preferred minimum.

Use this as research context and verify the current policy wording for a real property, renewal or claim.

04A mortgage requirement and the insurance policy's claim coverage are separate questions.

Use this as research context and verify the current policy wording for a real property, renewal or claim.

The lender protects its collateral

A mortgaged home secures the loan, so the lender has a financial interest in the property remaining insured. The borrower still needs to decide on contents, liability, deductibles, water endorsements and other household-specific coverage choices.

Mortgage approval does not prove every risk is covered

Showing proof of insurance can satisfy a lender while still leaving policy limits, exclusions and optional endorsements to review. A certificate of insurance is not a substitute for reading the contract.

Replacement cost matters to both household and lender risk

Market value and rebuild cost can move differently. A homeowner should understand the insured replacement-cost basis rather than assuming the mortgage balance or municipal assessment is the correct building limit.

PRIMARY SOURCE

Check the current New Brunswick source

Hazard maps, emergency guidance and insurance consumer information can change. Use the official source below before making a property or claim decision.

FCNB — Home and Tenant Insurance →

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