answersLogoWhite
Homeowner's Insurance
Mortgage Insurance

What if the amount of insurance is greater than the payoff value of your home?


Top Answer
User Avatar
Wiki User
2014-11-08 08:29:40
2014-11-08 08:29:40

Well.........!

It's common, Many people have more equity in there home than they owe on it.

Related Questions

User Avatar

than your car is totaled and your insurance company just pays you a dollar amount instead of paying for the repairs... assuming you have insurance

User Avatar

You can only collect the fair market value or retail book value depending on the regulations as established by your state's insurance commissioner. The only way you can collect the difference between the Actual Cash Value of your vehicle and the Payoff is through GAP insurance. This is usually offered to you during the purchase of your vehicle but can be purchased later. At the time of purchase, the offer to purchase GAP insurance may seem like a ploy by the salesman to sell you something you don't need. However GAP insurance is a valuable option should this situation arise. GAP insurance is what its name implies, insurance coverage for the "GAP" between the fair market value of your vehicle and the payoff amount.

User Avatar

the limit of a loan against the policy is the amount of net cash value you have on the life insurance policy. Up to 75% of the paid up value of the life insurance policy, irrespective of the sum insured amount.

User Avatar

no. If you have a loan greater than 80% of the value of the home and the lender requires mortgage insurance, then it is not optional.

User Avatar

The face value is what your beneficiaries will collect. The cash value is the excess of your premium payments over the cost of the insurance. Click here for more about life insurance cash value.


Copyright © 2020 Multiply Media, LLC. All Rights Reserved. The material on this site can not be reproduced, distributed, transmitted, cached or otherwise used, except with prior written permission of Multiply.