If your home burns to the ground?

Question

you are still required to pay your monthly mortgage payment every month. Most insurance policys don't have enough coverage on your home. It's your responsibilty to find out, of course, but how the hell do you survive with children, pets, etc. and be able to afford to live in a motel ( or where ever) until they rebuild the house that isn't covered completly and still make the payment to the non exsistant home? You even have to pay the higher mortgage when that time comes around if you don't have a fixed one. Shouldn't the insurance company notify you that your insurance won't cover the amount to rebuild you home long before it does? What good are they if they don't help people?

Also if your car burns as well you still have to make payments to the non-exsistant car. They will pay only a small portion for that car. What do you drive to work?

Answer 1

It is the home owners responsibility to buy enough insurance for their property. It is certainly no one elses fault if they did not buy enough.

But, rest assured. It costs about 1/2 of your homes value to replace it, and you don't have to get all of those new construction permits. Hooray!!

And of course you are still required to pay the mortgage. You accepted X amount of money from the bank and you spent it. Regardless of what became of the property you still spent their money.

Read your insurance, it should also cover temporary housing if yours in not habitable.

Answer 2

This is why insurance agents recommend periodic reviews of the policy.

Insurance is basically gambling. You're betting your house WILL burn down. The insurance company bets it won't. If it does burn, you likely get much more money out of the deal than you ever put in. If it doesn't, the company gets to keep everything you put in.

But most policies are written to cover up to a certain amount. If your house appreciates in value, then the replacement cost of that house can go far above the amount specified in the policy. The contract or policy you have probably says that they will pay up to that dollar value. If you want more coverage, YOU HAVE TO INCREASE IT, AND PAY FOR IT. The same goes for your car. If it's damaged, and you didn't have the foresight to increase the coverage, it's your own fault that you didn't get enough money to replace it.

And I'll bet that the insurance company HAS notified you that your policy won't cover the replacement cost of your home. Have you ever actually looked at the junk mail you get from them? Did it suggest an annual review? Did it invite you to come in and discuss your policy? If your house burns down, and you get up on your high horse and sue them for only paying you the amount that they promised to pay you, do you think they have a record of sending you these sorts of mailings? Bet they do...

You can get mad at me for pointing out this obvious fact, or you can call your agent and set up a policy review. The choice is yours.

Answer 3

Hi,
That's why they make replacement cost policies.
I have all my properties insured for the full replacement cost of the structure and the contents. My properties are historic and at today's cost would be... let's just say huge money. That's why I know my Ins. agents on a first name basis and speak to them about each quarter. Never ins. your home at an 80% value because your giving away 20% of its value just to save a few bucks. And yes, you still have to pay the loan to the Bank, or whomever you borrowed the money from.

Answer 4

Ummmm....how the hell is the insurer expected to know if you added a 2000 square foot addition if you don't TELL them about your increased value ? It's the OWNER'S responsibility to insure that his/her coverage is adequate.

Yeesh, now you expect insurers to go to every customer's home, assess it for value, and then advise you ???

Answer 5

It is your responsibility to carry enough insurance to pay off any existing mortgage and have mone to rebuild.