# Home Owners..I know this isn't a good idea..



## Helena (May 10, 2002)

We presently have home owners insurance on our home as most of do today. Owe "some" on our mortgage yet..not much..but home is insured for $160,000. Payments are increasing and even without ever having any claims. With $$$ getting very scarey for us I know the mortgage company will insure us for ...only...the amount owed on the house which doesn't help us if we have a devastating disaster..Insurance company says they can not legally insure us for less the the $160,000..some state rule..So is it a totally stupid idea to even think of this until things hopefully get better or keep paying the billing late and playing catch up ??


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## emdeengee (Apr 20, 2010)

The first thing I would do is shop around for another insurance plan if you have not yet done so. 

If you cannot find anything less expensive but with good coverage I would either sell the home or keep paying the insurance. This is a big part of your equity. 

If you owe only "not much" on your mortgage and the insurance you get through the mortgage will just cover this "not much' amount and you have a catastrophic event with your house then you will have nothing with which to start your life over. Even if you have a small event with your house will the "mortgage" insurance pay for the repairs?

Is there any way in which you can work to increase your income even if it is just enough to pay the house insurance?


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## Darren (May 10, 2002)

Ask your insurance compnay what the ISO rating is for your area. That depends on your fire department and emergency dispatch services. Perhaps residents in the area could work with those services to get a higher ISO rating which would reduce insurance premiums for everyone.


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## danielsumner (Jul 18, 2009)

What is your deductible? The deductible is a big factor, the higher deductible the lower the premium. Another thing is your contents coverage, just do the basic stuff, no frills. Check with a biggie like Statefarm or Allstate ect, they have lots of customers so don't have to oversell, they have plenty of fish in the sea. Tell them you want just basic coverage, no frills. You might be surprised.


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## Micheal (Jan 28, 2009)

Helena said:


> We presently have home owners insurance on our home as most of do today. Owe "some" on our mortgage yet..not much..but home is insured for $160,000. Payments are increasing and even without ever having any claims.


The company I was with (Allstate) wanted to up my preimum more than $200 for this year. So I know what you are saying......


> With $$$ getting very scarey for us I know the mortgage company will insure us for ...only...the amount owed on the house which doesn't help us if we have a devastating disaster..


If you go this route you may find that the premium is as much if not more than you are paying for homeowners with a lot less coverage........


> Insurance company says they can not legally insure us for less the the $160,000..some state rule..


Ahh, yes, state rules, etc..... sorta a get-ya, got-ya, we know best for ya.. Sadly your state isn't the "only" state that has those rules.


> So is it a totally stupid idea to even think of this until things hopefully get better or keep paying the billing late and playing catch up ??


 Stupid to think or talk about - no... but I would NOT put it on the near-top of any list of options without shopping around not only the major insurers, but also small independent ones also.

Another thing to consider; if you go the mortgage insured route you may run into diffculity getting a "regular" home-owners after the mortgage is paid off and that mortgage backed policy is cancelled...... As some insurers class it (the cancellation) as a "lapse" in coverage and therefore really and I mean really inspect your home before giving or denying you a "new" policy.


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## dirtman (Sep 15, 2011)

When things got bad we ran into a spell where Homeowners insurance seemed like a luxury and we skipped a couple of payments. The mortgage company took out insurance and charged us triple what we had been paying. we quickly got back to making our own payments. In the past five years our homeowners has doubled anyway and most people's have. The more natural disasters, the more it will go up.


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## Darren (May 10, 2002)

Sometimes your agent doesn't know all of the coverages you are paying for. As an example we were being charged automatically for mine subsidence insurance. According to records, from gas well logs, there is no mineable coal under the farm. Until I started asking questions about what the different coverages were, as signified by letters and numbers, neither we nor the agent knew what some were. We cancelled the mine subsidence insurance. That's a standard coverage in WV. We didn't have a mortgage at that time. 

Do you know what you're paying for?


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