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

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โˆ™ 2014-11-08 08:29:40
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Q: What if the amount of insurance is greater than the payoff value of your home?
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What if hail damage is greater than the value of car?

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

If your car is worth 12K but you owe 20K on it will the insurance company pay it off if it is totaled in an accident?

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.

What limits the amount that a policy owner can borrow from the insurance poicy?

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.

Is mortgage insurance optional?

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.

If you cash out a permanent life insurance policy what amount do you get net cash value or total coverage amount?


What is the difference between face amount and cash value?

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.

When a life insurance policy is cancelled and the insured selects term nonforfeiture the cash value of the policy will be used to purchase term insurance what happens to the face amount?

face amount reduces and the policy is made for paid-up value

What is the most important value of health insurance?

It reduces the amount you pay for medical expenses.

When car repossessed can you pay the cars value?

Yes. And the payoff, will usually be less than the amount owed on the loan. Work with the bank. They do not want the car, only their money.

Benefit of choosing Extended Term Insurance as a nonforfeiture option?

It has the highest amount of Insurance Protection; Under this option the insurer uses the policy cash value to convert to term insurance for the same face amount as the former permanent policy. The duration of the new term coverage lasts for as long a period as the amount of cash value will purchase.

Can you buy the amount of homeowner insurance you want?

Insured Property ValuationIn the united States there are two valuations that can be used to purchase your homeowners insurance coverage. ACV (Actual Cash Value) or RC (Replacement Value). If you are wanting to insure just the amount you we on a finance or mortgage note, That would be called mortgage insurance, not homeowners insurance..

How does the the damage that a hurricane does determine the amount of monetary damage?

Usually the amount of damage is estimated based on insurance claims. Uninsured property is then estimated based on the total value of the insurance claims.

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