Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Thanks for the replies. So it seems like the mortgage doesn't factor much into the cost of insurance. I talked to Allstate, which has given me the best rate, and they did say they change the algorithm for insurance rates if a mortgage is paid off, but he wouldn't say it cheaper. So I just wanted people who have experienced both ways to chime in. It looks like we are going to save $40 a month in home insurance. Who we used to have just kept jacking up the prices every year. First year it was $43 a month and now it's $94, just 3 years later.
Thanks for the replies. So it seems like the mortgage doesn't factor much into the cost of insurance. I talked to Allstate, which has given me the best rate, and they did say they change the algorithm for insurance rates if a mortgage is paid off, but he wouldn't say it cheaper. So I just wanted people who have experienced both ways to chime in. It looks like we are going to save $40 a month in home insurance. Who we used to have just kept jacking up the prices every year. First year it was $43 a month and now it's $94, just 3 years later.
You might do well to research the reviews on Allstate. It's not an insurance company that I would personally want to deal with. MANY other agree with me. Sometimes, the truth is this: You get what you pay for.
I'm in the process of changing home insurance companies and I was wondering if having a mortgage vs not having a mortgage effects the insurance rate? Anyone have experience paying off their mortgage and their insurance drops in cost? We could probably pay off our home this year, but not sure yet. We are doing some remodeling as well.
I don't believe so, other than you being able to carry as little (or even no) insurance on your home, once you own it outright. Obviously, the less insured you are, the lower your premiums.
You might do well to research the reviews on Allstate. It's not an insurance company that I would personally want to deal with. MANY other agree with me. Sometimes, the truth is this: You get what you pay for.
I don't believe so, other than you being able to carry as little (or even no) insurance on your home, once you own it outright. Obviously, the less insured you are, the lower your premiums.
Besides the cost, the amount of insurance isn't changing.
And the replacement value of the home should not be affected hy the existence of a mortgage.
We've paid off mortgages and advised the insurance company a couoke of times. The cost of insurance did not decrease. Nor does it increase when someone does a cash out refi. In my mind, there's no good, logical readon that it should.
What I am saying is with a mortgage, the bank always requires full replacement cost. If one owns the property free and clear, than one may insure it to cover market value costs.
Usually the best rated companies have higher rates on mortgaged homes, and better rates may be found with smaller companies.
[quote=OldDocKat;43123483]What I am saying is with a mortgage, the bank always requires full replacement cost. If one owns the property free and clear, than one may insure it to cover market value costs.[/QUOTE ]
I can't think of one logical financial reason for insuring for market value unless maybe I owned a house in the ghetto.
Quote:
Originally Posted by OldDocKat
Usually the best rated companies have higher rates on mortgaged homes, and better rates may be found with smaller companies.
I'd like to see a link to some evidence of this. I'm insured with USAA, regularly rated as one of the top two companies. My premium is unaffected by the existence of a mortgage.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
