This section is from the book "Real Estate Principles And Practices", by Philip A. Benson, Nelson L. North. Also available from Amazon: Real Estate Principles and Practices.
All mortgages upon improved property should be accompanied by fire insurance policies having loss payable to the mortgagee. The insurance should be of sufficient amount and in companies of good standing. Loans should not be made or renewed on property where fire insurance cannot be obtained, unless the loan is based on land value only.