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Do you still have to pay the mortgage while you are not able to live in the home? Does the insurance company help pay your housing expenses during the rebuild?
Location: IN>Germany>ND>OH>TX>CA>Currently NoVa and a Vacation Lake House in PA
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Yes, pay your mortgage. Call your insurance company to find out if they'll provide for temporary quarters while the house is being repaired. Only they can answer that question.
Location: Finally the house is done and we are in Port St. Lucie!
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Quote:
Originally Posted by LifeIsGood01
Do you still have to pay the mortgage while you are not able to live in the home? Does the insurance company help pay your housing expenses during the rebuild?
I truly hope this is just a hypothetical situation and not something that is happening to you!!!
Do you still have to pay the mortgage while you are not able to live in the home? Does the insurance company help pay your housing expenses during the rebuild?
Do you still have to pay the mortgage while you are not able to live in the home? Does the insurance company help pay your housing expenses during the rebuild?
A mortgage still needs to be repaid even if the collateral is destroyed...so lenders require insurance on the premises. Whether insurance would pay for living expenses while a house is being repaired would depend upon the policy. But...if a person insures their house as an owner-occupied home--and the insurance company finds out otherwise--you'd be in a heap of financial trouble since most insurance companies would love a reason not to pay off on an insurance claim! And you'd still be liable to pay off the mortgage, of course. Then, I suppose, life wouldn't be so good.
If you have a mortgage on your house, the check from the insurance company most likely will be in both you and the mortgage holder's name.
Thus, when the mortgage company endorses it , they will want their balance of the mortgage before you see any insurance money.
The bolded is not accurate, insurance pays to rebuild your house, it does not pay off your mortgage.
The fact that the insurance check usually goes to the mortgage lender and then they release it to you is so that the lender is protected against you just taking the money and disappearing or doing something else with it other than rebuilding the home.
So they sit on the money a while until they verify that you have started rebuilding then they release the funds to you to complete that work. The money goes toward rebuilding the home though, not to your mortgage balance.
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