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Conventional Loan Insurance Guide

Homeowners insurance requirements for conventional mortgages in SC and GA. Conventional loans are the most popular mortgage type, offering competitive rates and the ability to remove PMI at 20% equity. Total Quality Insurance compares 30+ carriers to meet your lender's requirements at the best possible rate.

Conventional Loan Insurance Requirements

Homeowners Insurance (Always Required)

Dwelling coverage equal to loan amount or replacement cost. Lender listed as loss payee. Effective before closing. Annual premium paid or escrowed.

Private Mortgage Insurance — PMI (If <20% Down)

Costs $50-$250/month depending on loan amount and credit score. Automatically cancels at 78% LTV. Request cancellation at 80% LTV. Not needed with 20%+ down payment.

Flood Insurance (If in Flood Zone)

Required for properties in FEMA-designated Special Flood Hazard Areas. Average cost: $700-$2,000/year depending on location and flood risk.

Wind/Hurricane Coverage (Coastal Areas)

In coastal SC, lenders may require separate windstorm coverage. This can significantly affect total insurance costs for Charleston and Lowcountry properties.

Conventional vs. FHA vs. VA: Insurance Comparison

FeatureConventionalFHAVA
Min Down Payment3-5%3.5%0%
Mortgage InsurancePMI (removable at 20%)MIP (usually permanent)None
Monthly MI Cost$50-$250$100-$300$0
Credit Score Min620580580-620
Homeowners Ins RequiredYesYesYes
MI RemovalAt 20% equityRefinance onlyN/A

Conventional Loan FAQ

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