HOME OWNERS INS Question

Discussion in 'Real Estate and Mortgage Forum' started by BlackWidow, Apr 25, 2017.

  1. BlackWidow
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    BlackWidow New Member

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    Hello I need some advice on a "What IF' situation.

    Rundown: Husband and I inherited our home from a deceased relative. The deed to the property and home are in our name. Due to the circumstances at the decedents time of death we were unable to gain the mortgage on the home. we knew our credit wasn't good enough. at the advice of the estate attorney we used, we were told that mortgage companies really don't care where the payments come from as long as they are paid and on time. That has not been a problem for us at all for the last 2 years. the home and property insurances along with taxes are paid by the mortgage company out of Escrow. Mortgage is still in decedents name along with the Insurance. Here is my question:

    If something (heaven forbid) were to happen, say fire, storm damage,etc.. How could we access the Insurance to have our home repaired? Would it even pay out because its not in our name? Some one told us to just "Reopen the Estate" and then it would be no problem.. Can you actually do that after a period of time?

    Any helpful answers or advice would be great! Thanks
     
  2. BeeSelective
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    BeeSelective Well-Known Member

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    Insurable interest must exist at time,of claim. I'm not sure you have any insurance. You better do some checking.
     
  3. dmetzger
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    dmetzger Member

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    I work in insurance and we had this happen. The insurance company would not pay the claim. I think you need to get the deed and insurance in your name.
     
  4. VolAgent
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    VolAgent Well-Known Member

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    They have insurable interest as they hold the deed, even if the mortgage is not in their name.

    However, the insured no longer has insurable interest, and the company may not have renewed or rewritten the policy had they known about the charge in ownership. That is the issue, the company may use it as an opportunity to get off the risk and simply return premiums since the title changed.

    So yes, you really need to have insurance in your name, which almost certainly means the mortgage in your name. Since you have been paying the mortgage on time for 2 years, I hope you have, they may be willing to let you assume the mortgage now even though you have poor credit.
     
  5. ARus
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    ARus Well-Known Member

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    The proper way to handle it, is to ask fr a new policy you name. As being on the deed, you have insurable interest.

    Supposedly the mortgagee will accept this situation for as long
    as you pay them on time.
     
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