What is the term for the insurance requirement most lenders have, insuring property for 80% of its replacement value?

The term that refers to the insurance requirement most lenders have, which insures property for 80% of its replacement value, is coinsurance. Coinsurance in the context of property insurance is a stipulation that requires property owners to maintain insurance coverage at a specified percentage of the property's replacement cost. This is often set at 80% to ensure that adequate coverage is in place in case of a loss. By having this requirement, lenders can protect their financial interest in the property and ensure that in the event of a claim, there will be sufficient funds to repair or replace the property.

In contrast, loan assumption refers to a scenario where a buyer takes over the seller's remaining mortgage and its terms. Pre-qualification is an initial assessment where a lender determines how much a potential buyer can borrow based on their financial situation. Pre-approval is a more formal process whereby a lender evaluates a buyer's financial background and creditworthiness, granting them a written commitment for a loan amount. While all these terms relate to the lending process, they do not pertain to the specific insurance requirement discussed in the question.