What type of insurance is typically required by lenders in Georgia for property transactions?

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In Georgia, lenders typically require homeowner's insurance for property transactions. This type of insurance provides coverage for damages to the property itself, as well as liability protection in case someone is injured on the property. Lenders have this requirement to ensure that their investment is protected from various risks such as fire, theft, or natural disasters. Homeowner's insurance not only safeguards the owner's financial interest but also assures the lender that the property will be maintained and protected, reducing the risk of potential losses.

While liability insurance protects against legal claims for injury or damage to others, it usually does not cover the property itself. Renter's insurance is designed for those who lease property and generally covers personal belongings but does not cover the structure. Flood insurance is sometimes required in certain areas, especially those prone to flooding, but it is not a standard requirement for all property transactions in Georgia. Therefore, homeowner's insurance is the primary insurance type mandated for most property purchases to fulfill the lenders' requirements.

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