Had a house fire - should Insurance cover mortgage?
My family had a house fire (needs to be re-built completely) and I am wondering if the insurance company should cover the mortgage if we are not living within the house?
Just out of curiosity...
Answers:
No, you would have needed a mortgage insurance rider on the policy.
No the insurance will not cover your mortgage.
More than likely however your homeowners policy have a provision in it for "Loss of Use" (or some similarly named phrase) which would remuneration you for the reasonable costs of living should the home be rendered uninhabital due to a coverage loss. Some companies have a set dollar ammount some hold a percentage of the main dwelling, and some have a simple time cut.
The way it would work is they'd probably pay to own you housed somewhere during rebuilding / repair plus some extra for the added expense you'd naturally incur from not being competent to cook at home etc etc.
The best person to speak with on what is getting compensated out will be your claims handler and you can discuss other coverage options with your agent.
But dolefully, the mortgage itself would be left entirely to you.
Nope, that's not a standard coverage. You still have to rate the mortgage. The STANDARD HO3, though, would pay for a trailer in the driveway to live contained by while the house is being rebuilt, or an inexpensive motel to live within - under the 'loss of use' section. Source(s): agent, 21+ years
There are some companies that will stick endorsement into policies so if you are out of the house they will make part of your mortgage contribution. You will have to check with your company to see if they own this endorsement. (Not many propose it)
If they do not, the mortgage is your responsibility even though you are not living in it. Source(s): Insurance agent 25 years
No, but you should have "additional living expense" which would cover rent on somewhere you're living now while the house is being rebuild.
The mortgage you'll have to pay a short time ago like you usually do.
Related Questions:
Just out of curiosity...
Answers:
No, you would have needed a mortgage insurance rider on the policy.
No the insurance will not cover your mortgage.
More than likely however your homeowners policy have a provision in it for "Loss of Use" (or some similarly named phrase) which would remuneration you for the reasonable costs of living should the home be rendered uninhabital due to a coverage loss. Some companies have a set dollar ammount some hold a percentage of the main dwelling, and some have a simple time cut.
The way it would work is they'd probably pay to own you housed somewhere during rebuilding / repair plus some extra for the added expense you'd naturally incur from not being competent to cook at home etc etc.
The best person to speak with on what is getting compensated out will be your claims handler and you can discuss other coverage options with your agent.
But dolefully, the mortgage itself would be left entirely to you.
Nope, that's not a standard coverage. You still have to rate the mortgage. The STANDARD HO3, though, would pay for a trailer in the driveway to live contained by while the house is being rebuilt, or an inexpensive motel to live within - under the 'loss of use' section. Source(s): agent, 21+ years
There are some companies that will stick endorsement into policies so if you are out of the house they will make part of your mortgage contribution. You will have to check with your company to see if they own this endorsement. (Not many propose it)
If they do not, the mortgage is your responsibility even though you are not living in it. Source(s): Insurance agent 25 years
No, but you should have "additional living expense" which would cover rent on somewhere you're living now while the house is being rebuild.
The mortgage you'll have to pay a short time ago like you usually do.
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