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Can you insure your home for less than its value if its paid for?
Wiki User
∙ 9y ago
An insurer is not likely to knowingly under-insure your home. It would be a violation of your states insurance code and could cause the agent or the company to be fined and possibly lose their license to do business in your state.
Does not matter whether it's paid off or not, it would simply be illegal for the company to knowingly do it.
Wiki User
∙ 9y ago
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Your mortgage company wants you to insure for the value of the loan but you think insurance should only cover the replacement cost of the structure what is the minimum coverage required?
You have to have it insured for at least the amount of mortgage. That is the mortgage companies "insurance" that it will be paid for if it is totally destroyed.AnswerIf you agreed to insure your house for the amount of the mortgage when you obtained your mortgage then you are bound by that agreement and will have no choice but to comply. Actually, the purpose of homeowner's insurance is not to insure the loan, it's to insure the property. You cannot purchase more than the replacement cost of the house. In the event of a total loss, you will only be paid the cost to replace the house up to the limit shown in the declarations, regardless of what the loan amount is. It is against the law for a mortgage company to require you to secure insurance for the value of the loan. They can be fined.
What is paid up value in a life insurance policy?
The paid up value of your life insurance is the point at which no further premiums have to be paid. It can occur either by paying all of the premiums in a lump sum or by paying all of the premiums due in instalments. The precise value of a paid up policy is a fanction of the face amount of the policy, less policy loans or accrued earnings, if applicable.
What is an description of equity?
Equity is the dollar amount of value in an investment. It can be more or less than the actual amount paid for the item.
What is a limited pay whole life insurance that pays you back a same amount of insure amount money after 20 year premium yet the insurance continue?
It is a 20-pay life. You pay premiums for 20 years and it is all paid up and no further premiums are due at that time. The cash value however will not equal the amount you pay into it, it will be less. But these policies usually pay dividends and can continue to increase the cash values or the face value depending on what election you choose. -ded
What is equity residential and why is it important?
It is the actual value you have in your home after your interest is paid. The reason it is so important is that it is the value on which your taxes are based. It is also the how you would guage the selling price should you decide to sell your property.
How long does the purchase price of the home continue to be the value versus appraised value?
The purchase price of the home is not the value of the home. It is what you paid for the home. The value of the home is the appraised value. A lender would look only at the appraised value of a home for lending purposes. If you paid more or less for the home, that is on you.
Will a good homeowners insurance policy will include guaranteed replacement cost?
It depends on your needs. Under the terms of guaranteed replacement policies you agree to carry enough insurance to cover 100% of the cost to replace the home. If you don't carry that amount you will be penalized on partial claims as well as total losses. Say you have a home built in 1850. Replacement cost to rebuild the home exactly like it was originally may be $600,000 but you only paid $150,000 for the home and that's what you want to insure it for. If you have an HO-3, replacement cost policy, you will have to carry at least 80% of the $600,000 cost to rebuild. You can buy a HO-8 policy which requires 80% of actual cash value and allows you to insure it for $150,000. If it burns down or a tornado destroys the home you will be paid $150,000 which will allow you to purchase another home and the premium is much less.
If your father dies and leaves you his house in which is paid will you owe a tax?
Yes, it will be treated as taxable income, based on the value of the home,less the remaining debt and any costs of repair, restoration, or improvements prior to marketing the home.
Can you Insure a home you don't own?
Insuring a Home You do not own.You can purchase a policy for a home you don't own but the legal owner must be listed as the Covered Person. Otherwise the Insurance Contract is invalid and no claim would be paid.
What is the value of a Houston Astros lunch box?
Probably less than what you paid for it. Just a guess
What is the value of a 1977 Klondic days souvenir coin?
If it is a "souvenir" coin, it is probably worth less than what you paid for it.
Your mortgage company wants you to insure for the value of the loan but you think insurance should only cover the replacement cost of the structure what is the minimum coverage required?
You have to have it insured for at least the amount of mortgage. That is the mortgage companies "insurance" that it will be paid for if it is totally destroyed.AnswerIf you agreed to insure your house for the amount of the mortgage when you obtained your mortgage then you are bound by that agreement and will have no choice but to comply. Actually, the purpose of homeowner's insurance is not to insure the loan, it's to insure the property. You cannot purchase more than the replacement cost of the house. In the event of a total loss, you will only be paid the cost to replace the house up to the limit shown in the declarations, regardless of what the loan amount is. It is against the law for a mortgage company to require you to secure insurance for the value of the loan. They can be fined.
Can you insure a car that you are paying payments on until its paid for from a private owner who holds the title?
I would insure any car that I was driving or making payments on. If you are on the title then you are an owner.
What is paid up value in a life insurance policy?
The paid up value of your life insurance is the point at which no further premiums have to be paid. It can occur either by paying all of the premiums in a lump sum or by paying all of the premiums due in instalments. The precise value of a paid up policy is a fanction of the face amount of the policy, less policy loans or accrued earnings, if applicable.
Can credit life be added to the loan and not paid until the end of the loan?
No it can not be paid at the end of the loan. Credit life is to insure the creditor. If you pass away before the loan is paid credit life will pay off the loan. If there is no cosigner then why would you insure the creditor? There is no advantage to you at all for getting credit life.
Do any laws for insurance required tax return for home insurance contents in Florida?
I believe you are asking if taxes must be paid on items replaced by a home owner's insurance policy. I do not think so unless the value was more than the original. Typically, insurance companies only write home owner's policies based on current replacement value. And only up to a certain amount. If the contents of your home are equal, by today's value, the insurance company will only cover up to the limit set by the policy. IT is best to insure contents by adding at least another 25% of it's replacement value to allow for inflation. I suppose if you are willing to pay the premiums, you could insure the contents of your home for as must as you like. But getting back to your question, I do not believe that you need to pay taxes (income)on replacements. Of course, you would need to pay applicable local, state and federal sales taxes.
What is an description of equity?
Equity is the dollar amount of value in an investment. It can be more or less than the actual amount paid for the item.
