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Only if they had mortgage insurance.
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∙ 13y ago
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Why would a lender pay the homeowner insurance?
Actually, the home owner pays the home owner's insurance. The lender has an escrow account. This is in additional to the payment of interest and repayment of principal. The escrow account pays the taxes and insurance. The escrow account pays the taxes so the government does not seize the property. The homeowners insurance pays in case the house burns down. So, you pay into the escrow account, and if your house burns down, the lender gets the insurance money. You would not pay a mortgage on a burned down house and the bank knows that, so they have you pay into the escrow account and they pay for the insurance.
Who is real estate title insurance paid to?
There are two general types of policies, or combinations: lender's insurance (which pays the lender to cover its loss in security interest) and owner's insurance (which pays the owner in case of defective title).
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.
Is there a clause in a life insurance policy that pays for a home if the owner dies?
It would be possible to write an insurance policy that way if you wanted to, however, normally a life insurance policy pays a fixed amount of money (known as the death benefit) to a chosen beneficiary. If the beneficiary then wished to use that money to pay for a home, that could be done.
If another person has car insurance and has an accident using your car which car insurance is used?
The rule of thumb is that the owner's insurance pays first and, if that coverage is inadequate, the driver's car pays.
Who pays when driver is not the car owner but has car insurance?
Usually the insurance policy of the owner of the car is primary and then if the driver of the car has a policy of their own then it is secondary.
What insurance pays off a house in case of a spouses death?
Credit Life Insurance.
Who pays for property insurance in a condominium?
In a condominium usually the board pays for property insurance on all common areas. An individual owner pays for 4 walls, the ceiling, the floor, the inside of the door, and everything in between.
Who pays building insurance on a rental house?
It really just depends on your lease. In some areas it is customary for the owner to provide the structures insurance while in other areas it is commonly part of a lease agreement that the tenant will provide it.
What kind of insurance pays to replace items destroyed by a fire in your house or apartment?
renter's insurance
Should the person who has ownership rights in an insurance policy and the insured be relatives?
The question does not really involve "should". The direct answer is "no". Using life insurance as an example, the owner of the policy is often the person who pays the premium. The insurance contract gives the owner various rights, such as to initially designate the beneficiary, change the beneficiary, pledge the policy as security for a loan, and other acts. The insured is the person whose life is, well, insured. Stated otherwise, this means that when the insured dies, the insurance company generally pays the death benefit to the beneficiary.
Does cat insurance pay to replace an animal if it dies?
Different insurance companies may have different insurance policies, so contact your insurance provider and ask them if their insurance pays to replace a cat.
