by hummingbird » Mon Sep 14, 2009 03:06 pm
Can anyone tell me if you dont have home owners insurance and the mortgage company carries insurance for you if this is unreasonably high?I think it is judging from the amount added to our payment.
Posted: Mon Sep 14, 2009 04:22 pm Post Subject:
It's high priced and it's not homeowners insurance. It offers no coverage for you, it just protects the lender for the amount you owe them. Why on earth don't you have homeower insurance?
Posted: Mon Sep 14, 2009 04:36 pm Post Subject:
We have none because ours expired and we had no money to renew. I guess we will have to dig up this money from somewhere.
Posted: Mon Sep 14, 2009 07:04 pm Post Subject:
Oh, sorry to hear it. You're are in KY right? I've heard home insurance has gotten quite expensive there. Invest some time in shopping around with independent agents in your area and you should be able to find something that can fit your budget. Best of luck.
Posted: Tue Sep 15, 2009 05:21 am Post Subject:
This sounds like one of the very few times a Decreasing Term policy might be best.
Posted: Tue Sep 15, 2009 06:25 am Post Subject:
Yes, and in most cases the policy will just cover the bank's interest. Example:You owe one payment on your house,you have a total loss, the insurance would pay the bank that one payment.Maybe it would be best to have your own policy and have it AND your prop. taxes come out of an escrow acct.
Posted: Tue Sep 15, 2009 09:50 am Post Subject:
Invest some time in shopping around with independent agents in your area and you should be able to find something that can fit your budget.
Yes, that way it would be easier for you. But, at the same time go through the terms and conditions carefully before you sign for it. Sometimes the benefits are too hard to collect in the event of a crisis. So, you must get clarified with all that's mentioned in your papers.
Posted: Wed Sep 16, 2009 05:48 pm Post Subject:
All confusing to me.Are you saying that if they carry the insurance and the house burned and say we only had 2 payments left .The insurance company would pay the bank the 2 payments and we get nothing? We had Farm Bureau they say that is the cheapest insurance around these days.
Posted: Wed Sep 16, 2009 07:10 pm Post Subject:
Okay, now I'm confused. Let me ghet this straight; Are we talking about homeowner's insurance in the life insurance forum?
Please allow me to cut to the chase: If you have a mortgage and you die, someone [else] will be responsible for your mortgage payment - who will that be? The bank will usually cover themselves with a type of mortgage protection policy which leaves your loved ones absolutely nothing. These policies are usually not terribly expensive but somewhat one-sided. This is where a more traditional life insurance policy works best.
If the house burns down, hopefully the smoke detectors will work well and everyone will get out safely.
Posted: Tue Sep 22, 2009 03:20 pm Post Subject:
We are talking about if I have a mortgage and no home owners insurance but the mortage holder takes out a policy and we have to pay it cause it is added onto our mortgage payment. If my hubby dies (God forbid) the insurance will only pay the house or property insured .But if the house if payed off then it will be free and clear .We aren't talking about if it burns I know the bank will get the money for that and we get nothing ...lol
Posted: Tue Sep 22, 2009 03:21 pm Post Subject:
Wait! I think I am wrong we wewre talking about insurance like damage not if hubby dies thats a whole other ball game.We would need life insurance for that i think.
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