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Posts Tagged ‘mortgage’

I understand there are companies that do this. I would like to leave it to a family member, and am worried that they will not be able to pay the balance. This way I know it will be taken care of.

Answer:

Hi, you need to get life assurance (term assurance) so, if you have 20 years left on your mortgage, you get 20years life insurance to cover the amount owed.

Some firms do decreasing term assurance, which runs along side your mortgage and the sum insured decreases as you pay off the capital.

So, make sure you check whether you are buying level term assurance or not, and choose to suit your needs.

C

i am buying a flat and my brother is going to rent it from me. i will not be living in the flat he will be in it himself.
he will pay me the amount of the mortgage so i will not be making any profit rom the rental.
do i need landlord insurance or what are the options?

Answer:

Yes you need a dwelling fire policy (some people call it landlord insurance). A Homeowner’s policy is only for owner-occupants, so since you do not live there you need a different policy. As the previous poster wrote Talk to your broker!

As for your brother, it is also in his best interest to get a renter’s policy. His contents and his liability cannot be covered by your policy, since it is your policy and not his policy.

I’m thinking about giving some music lessons from home to boost my income, would I need special insurance – and would it affect my mortgage?

Answer:

It should not affect your mortgage unless you are running a full time business from your home. You should increase your liability coverage and maybe look at an umbrella policy since you have an increased liability exposure (to protect you if someone says they got hurt coming to your home for lessons). Talk to your agent. Important to do before you start to figure out the increased cost and adjust your rates to cover this business expense.

I have a moutain vacation home that I may rent out once a month just to cover the applied mortgage. Is ther any caveots with insurance and what will have to be adjusted and cost extra? Thanks in advance.

Answer:

You should probably just call your insurance company and ask them, tell them you are thinking about doing that and ask them for a quote. If you don’t like it shop around, it might be worth it.

Answer:

The mortgage company has the right to buy insurance on your behalf and force you to pay for it if you leave your home uninsured. The insurance they buy will not be cheap and won’t have good coverage.

Also if something happens to the house and it was uninsured you would be responsible for the damage.

I would speak to some legal adviser before I do something like this. There may be much better ways to get out of the situation you are in.

Answer:

They can do one of 2 things, first is to move out as you have breached your mortgage agreement or secondly they can purchase it as they have an insurable interest in the property and charge you for the policy.

I see no mention of an insurance requirement in the fine print of my bank line of credit contract that places a chattel mortgage on my home. Am I in trouble if I don’t insure my home, or if I reduce the coverage to less than the full replacement value. I’m in Canada

Answer:

If it’s not contractually required, then no you do not need to carry insurance on your home. However you would be better off speaking to the person who arranged the line of credit and confirm this just to be sure as you may have misread the contract. Beyond that you are only in trouble with yourself unless you somehow have enough money to rebuild your house on your own saved somewhere. No insurance company is going to let you insure your house for anything less than the full replacement cost of the house. If you try they will just cancel the policy as they will see you as a moral hazard and not worth the trouble. You may be able to get away with it on a commercial type policy, however that will be difficult to arrange and will end up costing you way more.

They sent check for 00 and will send 00 more when work done. Roof will be 00, siding not too bad. They want itemized bill for second check. Can I use the 00 and forget about requesting 2nd check?
The check did not include mortgage co. This isn’t considered fraud, is it? I am getting the roof fixed and really need $ bad, siding is lower priority.

Answer:

This isn’t fraud.

But it’s going to be a problem with your insurance company – leaving unrepaired damage (the siding) can jeapordize the way your house holds up to OTHER weather damage. Also, they’re going to know it, because you’re leaving ,000 on the table.

They can cancel or nonrenew your policy, with the unrepaired damage – AND, don’t forget, that if something ELSE happens to that siding, they’re not going to pay for it a second time. That includes fire damage to it, or more hail, or whatever.

It could end up burning you in the long run.

We bought a title insurance when we first got our home loan. We are now refinancing with another bank and they are requiring us to get a new title insurance. Is this right?

Answer:

I work at a mortgage company, and most banks require title insurance for every mortgage that they underwrtie.

I am in the process of purchasing a home and the bank called me today and told me I had to obtain mortgage insurance before I purchased the home and we could continue the process. I am being financed through chase bank with a fha loan. Any additional information would be useful.

Answer:

homeinsurance.awardspace.us – try this one. Got my home insurance from them. As I know they provide such a service.