PITI: Principle, Interest, Taxes and Insurance are the four components that make up an impounded mortgage payment. Impounds the additional money collected by the mortgage company, and held in an escrow account, so that they can make insurance and tax payments on your behalf.
Property insurance is really the only portion of the payment you can control after the fact. You can probably add and change your insurance as you see fit as long as you maintain coverage on the property that meets the bank’s standards. The odds are your property insurance doesn’t cover everything. “Acts of God” is most likely the largest hole in a policy for which you wouldn’t be covered.
In 2008, a family lost their home to a landslide in southwest Portland. Farmers, their insurance company (we are insured by Farmers), paid $274,000 but not the $3,ooo,00 the family had sought. Farmer’s reason: the house had been destroyed due to “earth movement” and therefore not covered. The courts agreed.
There is no way to say what your policy says is or isn’t covered without reading it. Nor is there any way to interpret how a claim will be handled but there may be things that you know you want to add; some but not all insurers have earthquake coverage but not in their base policy.