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Is it mandatory to have homeowners insurance after you pay off your house?
Wiki User
∙ 13y ago
No. Unlike auto insurance, homeowners insurance is optional and is not mandatory if your house is paid for. Just keep in mind though, if your home is lost due to fire, tornado, etc., you will not collect any kind of recovery for the loss.
Also, without a homeowners insurance policy with liability coverage, you won't be covered for liability damages should someone fall or be injured in some way while at your home.
Wiki User
∙ 13y ago
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Do I need homeowners Insurance after I pay off my mortgage?
Only a lien holder can require a borrower to carry insurance.
Does homeowners insurance pay off your mortgage if you are sick and dying?
Homeowners insurance does not provide any coverage for paying the mortgage payment - it only covers damages to the house itself. For coverage to pay off the mortgage in case of illness, accident, or death, you need disability coverage and/or life insurance. Disability coverage will generally pay a monthly benefit for as long as you are unable to return to work due to injury or illness, while life insurance pays a lump sum to your beneficiary upon your death.
How does paying off your mortgage affect the cost of obtaining homeowners insurance?
Depending on the insurance company they may give you a discount, usually 5- 10%. In essence when you have a mortgage on a property the insurance company notes it on your homeowners policy and sends a letter to the mortgage holder providing proof that you have protected their (your house) asset by insuring it. Discounts that may be available: Mortgage Free, Monitored Alarm Discount, Multi Policy, Claims Free, Senior.
Can your ex spouse drop your name off the homeowners' insurance if you are still on the property deed and mortgage?
Yes, The ex spouse may drop your name off the homeowners insurance, all the other party have to do is take out an homeowners insurance out in his/her own name. that way they know their investment is secure.Another PerspectiveNo. There would be a problem if there is a pay off in the case of a catastrophe. Your ex would have to list her/his name as the owner of the property and that would be fraudulent. If it was disclosed there was a co-owner the policy would go in both names. An insurance company cannot pay only one joint owner if the property is wrecked by fire or some other disaster. If you own the property and are paying the mortgage the insurance company would be liable for paying only a half-owner. You should consult with an attorney in order to get this issue resolved.
Does homeowners insurance pay the loss to the homeowner or the lender?
The leinholder is paid off first, then anything remaining goes to the homeowner. This is usually done with a check that is made out to both the lender and the homeowner.
Does homeowners insurance cover your mortgage if you are laid off?
No. This is not what homeowners insurance is for. Homeowners insurance is to pay for physical damage to your home and contents.
What companies sell homeowners insurance in FL?
None of the major insurance companies sell homeowners insurance in Florida. The state has made a mess in the insurance market and now the state run company citizens is reaping off homeowners.
Am I required to have a homeowner insurance policy?
Unless you've totally paid off your house, mortgage companies will generally require you to have a homeowners policy.
Does homeowners insurance cover a vehicle stolen off your property?
No, That's what Auto Insurance is for.
Do all states require a homeowner to carry homeowners insurance even afer a house is paid off?
No, Not a single one of them. There is no legal requirement in the U.S.A. for homeowners insurance. If there is still a mortgage on the home though, insurance is almost certainly required by the mortgage contract, but this is a contractual obligation, not a legal requirement.
Does health insurance or homeowners cover a broken arm from a jump off of a fence?
Your Health insurance.
If I hit a car parked in my driveway while backing out would the owner of the car submit a claim to my car insurance or my homeowners insurance since it took place on my property?
HI, Working in a car insurance company, you would claim off your car insurance as the vehicle was involved in the accident, however because it was on your own personal property you may be able to claim off your house insurance depending on the terms of your policy, you will find most homeowners insurance only covers the house itself and not the surrounding gardens
Will Homeowners insurance cover replacement of all brick on house if one brick wall falls off after foundation settles?
No. The insurance will only cover the replacement of the one brick wall that falls.
Do I need homeowners Insurance after I pay off my mortgage?
Only a lien holder can require a borrower to carry insurance.
Does homeowners insurance cover stolen items at college?
If you have off premise coverage on your policy and the stolen items were scheduled on your homeowners insurance policy then Yes, you should be covered for those items. Contact your insurance agent for clarification of your insurance coverage.
Do you Need Homeowners Insurance if your House is Paid Off?
A source of confusion for many people who have made their last mortgage payment and now own their home free and clear is whether or not they need to continue to carry homeowner insurance. Most States do not require homeowners to carry insurance on their house, while all mortgage lenders do. Once you receive the Title to your home, you are the official owner of that home. It makes no sense to give up your homeowner insurance just because it is not mandatory. While you can save a few dollars by canceling your policy, if you do so, you are needlessly exposing yourself to great risk either from damage to your home or liability for any injuries that may happen on your property.
Would homeowners insurance cover the remaining balance if the owner dies?
No, homeowners insurance pays for damages and losses due to certain hazards listed on the policy. Typically, Fire, wind, Hail, falling objects etc, But it will not pay the mortgage note nor pay the house off due to the death of a buyer.
