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Does homeowners insurance pay off your mortgage if one of the homeowners dies?

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2013-03-06 14:06:37
2013-03-06 14:06:37

No. For that kind of benefit you need mortgage insurance or a life insurance policy.

No. For that kind of benefit you need mortgage insurance or a life insurance policy.

No. For that kind of benefit you need mortgage insurance or a life insurance policy.

No. For that kind of benefit you need mortgage insurance or a life insurance policy.

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2013-03-06 14:06:37

No. For that kind of benefit you need mortgage insurance or a life insurance policy.

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Related Questions


No. This is not what homeowners insurance is for. Homeowners insurance is to pay for physical damage to your home and contents.

Only if they had mortgage insurance.

Only a lien holder can require a borrower to carry insurance.

Mortgage Insurance protects the LENDER in the event of a foreclosure and will pay any $$$ loss to them....no protection at all for YOU. Mortgage Life will pay-off your mortgage in the event YOU or the covered person dies.

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.

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.

No. A homeowners loss while under construction is covered by the Builders Risk Policy.

If the mortgage is in your name it would not be affected by the death of your spouse. Mortgage life insurance is coverage that is taken out so that your house would be paid for in the event of your death.

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.

There are many benefits from getting life insurance mortgage protection. When one dies, if he does not have his mortgage paid life insurance would pay it off so his next of kin could keep the house.

Unless you've totally paid off your house, mortgage companies will generally require you to have a homeowners policy.

No. Homeowners insurance provides property and liability loss insurance. It is not life or disability insurance. You can purchase a term life insurance policy that decreases in coverage along with the mortgage balance on your home. You can even purchase a joint policy that would pay the house off when the first person (like and husband and wife) dies then the policy would cease. This type of policy is cheaper than purchasing two seperate life insurance policies and still does what you want it to do, that is not leave the surviving spouse with a large mortgage balance on the home if one of you dies before the other.

If you have an outstanding mortgage on your property at the time of your death the lender will take the property if the mortgage isn't paid. You can purchase some type of mortgage insurance or life insurance to pay off the mortgage in the event of your death. Otherwise, your heirs will need to pay it if they want to keep the property.

The estate must be probated. Either the children need to pay the mortgage or the bank will take possession of the property by foreclosure.

Depends on what insurance is being carried. Most mortgage holders require individuals to purchase insurance to cover the balance if there is less than 15 or 20% equity being held. If you aren't carrying PMI on the mortgage, you could obtain private life insurance that can be used to pay off the mortgage.

NO,, Homeowners insurance insures the house for covered perils, typically fire, wind, hail, etc.Mortgage insurance would be coverage for the mortgage note in the event of death or disability of the buyer.Disability insurance also does not pay your mortgage note. it generally provides you with monthly income or lump sum payments that you can spend on whatever you want, including everything from groceries, monthly house notes, utilities, etc.

If you have paid off your mortgage and do not have a lien on the home you are not required to have insurance in most placed. But only a fool would not have basic homeowners insurance even if they were not required to. What if your home burns down?

Yes. The mortgage must be paid or the lender will take possession by foreclosure unless the decedent had assets that will pay off the mortgage or some form of mortgage insurance.

You can stop your escrow buy paying off your mortgage and satisfying all the requirements of your mortgage. Lenders set up an escrow account so that they can pay the real estate taxes and homeowners insurance.

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.

You don't HAVE to cover your property with homeowners insurance once your home has not mortgage but you could lose everything if you had a fire or if someone was injured on your property. Some HOA's require some type of insurance on every property regardless of mortgage. Its not a wise decision to drop coverage.

PMI has absolutely nothing to do with the death of a home owner. There is no benefit to the PMI in this situation. A Mortgage Life Insurance policy would be of great benefit as it would pay off the mortgage on the house at the death of the homeowner.

The mortgage insurance you are referring to is most likely the standard mortgage insurance that is on a loan above 80% of the value of the house. This MI covers the lender in case of the borrower defaulting on the loan. It does nothing to help the borrower. If you are on the deed then you still own the house if your husband dies but if you cannot either refinance the mortgage or continue to pay the monthly payments then the lender will ultimately foreclose on the house and repossess it. What you need is a life insurance policy that will pay off the balance on the mortgage in case of the death of the mortgage holder.


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