OT- Home insurance
pmcollectour
Posts: 1,211 ✭
Someone asked me today if he had to have homeowners insurance if he owned his home (no mortgage payments).
I do not know the answer. Anyone here work in the insurance business ?
He lives in New Jersey and either wants no homeowners insurance, or the cheapest thing possible if required by law.
Any help would be appreciated (and he'll pay in gold to keep this on topic
)
I do not know the answer. Anyone here work in the insurance business ?
He lives in New Jersey and either wants no homeowners insurance, or the cheapest thing possible if required by law.
Any help would be appreciated (and he'll pay in gold to keep this on topic
) 0
Comments
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
Of course, if your home is worth next to nothing, I guess it could make sense. But how many sub-ten thousand dollar homes are occupied by owner?
Seems like if the mortgage is paid for, the small % cost of keeping HO insurance would be a no brainer. Why would you want to start over with mortgage payments if you lost your house, assuming you want a comparible house and you're not flithy rich?
If you are financially seucre, then reduce the coverage so the premiums won't be as much if you're just dying to save a few bucks.
Too many positive BST transactions with too many members to list.
Replacing a home, or parts of it, as covered with homeowner's insurance is only 1 piece of the pie.
Protecting oneself if someone gets hurt on your property is another. Is the person so rich that they don't mind being sued if someone claims injury on the property?
Whenever I have these types of insurance questions, I call my insurance broker, and he does NOT just try to sell me on anything new or higher. As a matter of fact, some of the times I have called him, he has been the one recommending how to decrease my payments...one time with no change in policy at all as they had a "new" type of policy change to benefit people, of which I was qualified.
So, he should get on the phone, talk to his broker, and walk through the scenarios. If he can't do that, he needs a new broker or new insurance company. Something tells me though that he may not be the easiest to talk to as he likely thinks everyone just wants his money and he won't believe what he is told.
I've been told I tolerate fools poorly...that may explain things if I have a problem with you. Current ebay items - Nothing at the moment
<< <i>The person asking the question doesn't seem to have thought things through.....
Replacing a home, or parts of it, as covered with homeowner's insurance is only 1 piece of the pie.
Protecting oneself if someone gets hurt on your property is another. Is the person so rich that they don't mind being sued if someone claims injury on the property?
Whenever I have these types of insurance questions, I call my insurance broker, and he does NOT just try to sell me on anything new or higher. As a matter of fact, some of the times I have called him, he has been the one recommending how to decrease my payments...one time with no change in policy at all as they had a "new" type of policy change to benefit people, of which I was qualified.
So, he should get on the phone, talk to his broker, and walk through the scenarios. If he can't do that, he needs a new broker or new insurance company. Something tells me though that he may not be the easiest to talk to as he likely thinks everyone just wants his money and he won't believe what he is told. >>
Well said!!
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<< <i>The insurance isn't just for the dwelling, but also liability. >>
yes!
and why self insure your own home when you can buy a policy and carry a high deductible?
derryb, does your policy have a co-insurance clause? hopefully you are insured to at least whatever % value that may be
its true that rebuilding is more expensive than just buying somewhere else. i doubt your policy would allow you to just buy another house even with a full ordinance endorsement. many do not give you the choice to be paid and walk away happily ever after.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
One more thing to check is if there's an HOA they may take legal action if your house it totaled and you walk away and leave it. Check with a lawyer and read the HOAs policy.
I think good advice is keep at minimum a policy with a high deductible to keep covered in case of a total loss or liability.
<< <i>One more thing to check is if there's an HOA they may take legal action if your house it totaled and you walk away and leave it. Check with a lawyer and read the HOAs policy.
I think good advice is keep at minimum a policy with a high deductible to keep covered in case of a total loss or liability. >>
municipal building code in most places would require demolition or removal of an unsafe structure. Also, land value would not be recovered with a sale until cleared.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey