can i pay off my mortgage with fire insurance money?

by clarencemjo » Thu Jan 06, 2011 01:13 pm

i owe 98,000 on my home. i've recently had a fire in which my home was totalled. the restoration company and insurance company came up with the figure of 105,000 for rebuilding not counting personal loss. i want to know can i pay off my home mortgage and fix out of my pocket?

Total Comments: 1

Posted: Fri Jan 07, 2011 09:32 am Post Subject:

I don't think you'll have any problem if the claim check has your name only. You can use it. However, things will be different if the insurer only agreed to reimburse the repairs company. In addition, it might affect your future claims in connection with similar damages caused to your home.

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