Hello, is it possible to insure my portion of a home with several owners. My mother passed away and the home was left to all her heirs (children), none of the other siblings care to insure the property and my concern is that i would like to insure my interest in the property. I have a sister whom we all agreed can live in the house, valued at $213,000 but she says she cant afford to pay insurance. I am not willing to pay all insurance for everyone and if something happens to the house they all benefit, so is it possible just to insure my portion (1/4th) of the home?
Home Owner Insurance with Several Owners
- Thread starter jjones4
- Start date
Not that I'm aware of.
It causes a lot of problems when there is a claim and most home policies, even if you could insure only 25% of the home, wouldn't work the way you would think they should. Also, buying 25% of the insurance probably will have 75% of the costs, since overhead is actually higher, not lower.
Its a bad idea. Okay, yes, you can find someone who would do this, but, they would probably charge you more than insuring the entire home. It's sort of like buying a tailor made suit instead of one off the rack. It might fit better, but because of the extra work, it costs a LOT more.
Dan
It causes a lot of problems when there is a claim and most home policies, even if you could insure only 25% of the home, wouldn't work the way you would think they should. Also, buying 25% of the insurance probably will have 75% of the costs, since overhead is actually higher, not lower.
Its a bad idea. Okay, yes, you can find someone who would do this, but, they would probably charge you more than insuring the entire home. It's sort of like buying a tailor made suit instead of one off the rack. It might fit better, but because of the extra work, it costs a LOT more.
Dan
AZInsurance1
Expert
- 33
No, you need to insure the home for 100%. Also, market value is usually lower than the cost to rebuild.
Market value vs cost to rebuild depends on where you live. In my area, market value is almost always significantly higher than cost to rebuild.
But point well taken, they are different entities and should not be confused.
Dan
AZ Insurance Guy
Expert
- 40
Either way the 4 owners need to work together and buy insurance on the property. What about the person that will live their? is she one of the 4 owners? what if she has a dog and it bites the neighbor's kid? You are all exposed for your share of loss.
AZInsurance1
Expert
- 33
Got ya!
I love how I have clients who are paying half of what we are insuring the property for, it makes for good conversation!
I love how I have clients who are paying half of what we are insuring the property for, it makes for good conversation!
AZ Insurance Guy
Expert
- 40
What if the person you let live there has a dog, that dog bites the neighbor bad. The 4 owners are on the hook. I'd figure out a way for all the owners to split the cost and buy a policy.
The owners of the dog are on the hook, not the owners of the house. The tenant should have renters liability to cover this. If you know of an actual case where the landlord has been held liable, I'd like to know about it, providing the dog has no history of attacking anyone.
Now, if someone comes over and gets hurt in the house, due to the condition of the house, the owners could be on the hook.
Dan
Now, if someone comes over and gets hurt in the house, due to the condition of the house, the owners could be on the hook.
Dan
- Thread starter
- #9
ok, i understand what you guys are saying and thanks for the information. My main concern is the 4 siblings do not get along. Their are 4 heirs and i am considered by them as their half brother whom they never accepted. Since mom died even tho my oldest sister lives in the house, i have been the only one maintaining the house, keep yard cut, repairs, etc. They are fighting amongst themselves about the house and i have no desire to live their . Its a uncomfortable situation with the house being uninsured and I feel that i only have two options and that is to partially insure the property or giving them my interest in the home and walking away. The reason i don't want to just walk away is that my siblings age ranges from 57-63, but i came along late in life since mom had me when she was 47 and i am current age is 33 so i feel i might be here when they are dead and gone
I guess i am thinking selfishly but if i was to insure the house for 100% i would hate for them to conspire together to make the house "go away" for a quick payday for them. i was the only one who grew up in the house, but i don't have an emotional attachment so i am going to base a my decision on logic. In this instance, my siblings have always been moochers and have entitlement issue but i only want to protect my self if the house was damage or destroyed.
I guess i am thinking selfishly but if i was to insure the house for 100% i would hate for them to conspire together to make the house "go away" for a quick payday for them. i was the only one who grew up in the house, but i don't have an emotional attachment so i am going to base a my decision on logic. In this instance, my siblings have always been moochers and have entitlement issue but i only want to protect my self if the house was damage or destroyed.
- 4,132
jjones4,
Honestly, put the house on the market. split the sale and go your own way. Just from how you've described it, this is a huge problem that will end up terribly.
If you can't agree to insure the residence, what happens when the electric, water and garbage bill come due? Big mistake, big headaches, sell the house, don't let anybody squat in it. Or offer to buy it outright. Continue on the way you're going and they'll be nothing left. Seen it before, no reason to think it would be different this time around. Sell it and don't go into business with your family. They aren't good partners.
Honestly, put the house on the market. split the sale and go your own way. Just from how you've described it, this is a huge problem that will end up terribly.
If you can't agree to insure the residence, what happens when the electric, water and garbage bill come due? Big mistake, big headaches, sell the house, don't let anybody squat in it. Or offer to buy it outright. Continue on the way you're going and they'll be nothing left. Seen it before, no reason to think it would be different this time around. Sell it and don't go into business with your family. They aren't good partners.
