do lenders really require wind and hail insurance?

I live in a coastal area where many insurors are pulling out, leaving homeowners with no choice but to get wind coverage through a state-run — and very expensive — source. Insurors such as Allstate will give us a regular homeowners policy that covers fire, theft, etc., but no wind coverage. So, in effect, we must buy two policies — the regular insurance and wind insurance. A neighbor has only the regular policy, not the wind coverage, and says he will use a low-interest SBA loan to rebuild if a hurricane ever hits. He says the wind coverage is too expensive for a risk that might never occur. This guy also has a mortgage on his home. I thought lenders required homeowners to completely cover their home, including with a wind policy. Am I wrong? Will mortgage lenders accept a policy that only covers such things as fire, theft, etc. and not wind? Or is this a case where the lender simply isn’t checking my neighbor’s policy closely enough to see there is no wind coverage?

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