In the United States, there is no requirement to have house insurance. However, most banks and lending institutions require you to have insurance while there is an outstanding mortgage on the house. Once you have finished paying off the house, you don't have to maintain the insurance.
However, it is a good idea to continue the insurance plan if you can afford it. Without insurance, if your house burns to the ground, you are left with no place to live and no money to purchase or rebuild.
No, that's not how it works. Mortgage insurance is to cover you defaulting on the loan, and you're expected to pay it. Homeowner's insurance covers the home itself in case of accidents. If they pay off the value of the home because it was totally destroyed, you're still responsible for the loan before you get whatever's left over.
You must pay off the loan.You must pay off the loan.You must pay off the loan.You must pay off the loan.
It depends. if you have GAP insurance, the insurance company will pay the payoff amount. If you do not have GAP insurance, it is the holder of loan's responsibility to pay off the complete open loan regardless of the amount paid by the insurance company.
The insurance should pay the loan (if your lucky it'll pay all of it) If there was no insurance then you still have to pay for the loan. I had a car stolen and I had to keep paying for it until the insurance finally paid it off and I was left with $50 in the end to get a new car with.
Yes, if your insurance company will not pay it all.
Normal car insurance Liability, Collision, & Comprehensive will not pay off the loan. You would need to get the proper insurance for this purpose. Either life insurance or insurance for the purpose of loan payment.
Unfortunately, no. What gap coverage does is pay the balance on your car loan if your car is totaled and the insurance payment is not enough to pay off the balance of your loan. Quite often our vehicles depreciate faster than we can pay them off. Insurance only pays the depreciated (blue book) value, so sometimes what you will get from your insusrance company doesn't pay off the loan.
Only if you carried GAP insurance will it pay off what you owe to the Lienholder. If not then they will only pay what they valued your car to be worth which may or may not be enough to pay off the loan.
the bank cant come and steal it. but the insurance company can if you dont pay that
It all depends on whether you still owe money on the home. Most lenders will require you carry hazard insurance until you pay off the loan. If you own the home free and clear then it's really just up to you whether or not you want insurance on it.
The estate will have two specific choices: Pay off the loan with the money in the estate. Sell the house and pay off the loan.
That is typically one of the contingencies that mortgage insurance will pay. The other tends to be when someone loses their job.