When you win an insurance settlement after a fire, can you use the money to buy a untried home instead of renovate?
My son's home caught on fire 7 days after he and his wife purchased it. No one was within it. They were in the process of fine art and fixing it up before they moved in. They believe they will be offered a settlement by their insurance company. Do they hold to use it to rebuild, or can they demolish the burned house and sell the lot and afterwards buy another house somewhere else?
Answers:
They can do anything they want with the money.
Yes, but you don't gain the full replacement value - you get the depreciated, actual dosh value, unless you actually redo.
If they owned the house outright, they can do whatever they want. If the house was mortgaged, it be the lender's security, and the lender absolutely have a say in the thing. If the amount of the settlement is enough to pay bad the mortgage, then they can sell the territory, but as long as there's a mortgage, the bank dictates what happens.
The lender (if any) gets their money first. Then he would be free to do what he requests.
Related Questions:
Answers:
They can do anything they want with the money.
Yes, but you don't gain the full replacement value - you get the depreciated, actual dosh value, unless you actually redo.
If they owned the house outright, they can do whatever they want. If the house was mortgaged, it be the lender's security, and the lender absolutely have a say in the thing. If the amount of the settlement is enough to pay bad the mortgage, then they can sell the territory, but as long as there's a mortgage, the bank dictates what happens.
The lender (if any) gets their money first. Then he would be free to do what he requests.
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