The VLB requires title insurance policies on all homes purchased through the Home Loan Program. This policy insures the lender and obligates the issuing title company to defend problems regarding the title that began or existed prior to the purchase.
Hazard, fire and casualty insurance are also required. The policy must be payable to the veteran and the lender as loss payees in the event of a natural catastrophe.
If the home is in a flood zone, the veteran will be required to purchase flood insurance. Proof of this insurance must be presented prior to closing.