[Single Track]

I need some help real quick because I have put a deposit on a Fernandina patio villa and am now dealing with Citizen First mortgage. When I mentioned to them this morning that I might have to rent it out for Dec thru Mar each year to help with expenses, they said the mtg. rate would increase from 3.75 to 4.75. I would live there for most of the rest of the year. I then said "never mind as far as you're concerned, I'm not going to rent it out". He was okay with that but he warned me that when I go to get insurance, I will need renter's insurance and that the insurance company will notify the bank and the bank will recalculate my rate back to the 4.75 or whatever it happens to be at the time. They have me over a barrel. Even in a year or two if I don't have to rent it, the rate will not go back to 3.75. It is a lifetime of paying the higher rate.

Do I really need renter's insurance? Would a property management company require that I have renter's insurance?

Please give me some of your expert advice asap.