u/Meetmeatthebeach

I'm in the process of getting a HELOC on a condo through a credit union. I have H-06 insurance and the condo building has dwelling insurance. I just got a final condition from my lender that they want the coverage for the full principal balance of my 1st loan and the amount of the HELOC.

So currently our hazard insurance is 131k, but we owe 300k on the 1st mortgage and are taking out a 200k HELOC, thus they are asking for $500k coverage.

Is this normal? My research suggests this might be normal for a single family home, but not really for a condo that has dwelling insurance through the HOA as well as personal H-06 insurance.