Home Insurance Policies – HomeownersInsurance.org http://www.homeownersinsurance.org Homeowners Insurance Tips and News Fri, 28 Jun 2013 15:01:02 +0000 en-US hourly 1 https://wordpress.org/?v=4.8.1 Buy Your Own Homeowners Insurance http://www.homeownersinsurance.org/buy-your-own-homeowners-insurance/ http://www.homeownersinsurance.org/buy-your-own-homeowners-insurance/#respond Thu, 09 Sep 2010 20:19:46 +0000 http://www.homeownersinsurance.org/?p=911

Some home owners, after falling behind in their payments, have allowed their mortgage companies to purchase homeowners insurance on their behalf and apply the extra charges to the mortgage payment. Frankly, that’s a very bad idea. Here’s why:

  1. When your mortgage company buys the insurance, even if you are paying for it, they will generally only buy enough insurance to recompense themselves in the event that tragedy strikes and you lose your home to fire, tornado, or other disaster. While this does relieve you of having to pay off the mortgage, it doesn’t do squat for giving you any money to live on, or for replacing anything that was damaged in your home. You’re on your own for all of that.
  1. When your mortgage company buys the insurance for you, they have no real vested interest in keeping the prices down or shopping around. Therefore, they will simply run you through the homeowners insurance company which they always use. The bottom line here is that you will almost always end up paying more for your insurance than if you had bought it yourself.
  1. Often, the reason why mortgage companies buy the insurance for you is because your home has problems which would stop other insurance companies from accepting the risk. If this is the case, why are you living in the house? It’s dangerous. Chances are, if you live in this kind of house, you are fixing it up while you live in it. The problem with having your homeowners insurance through your mortgage lender is that you have no one to go to as you make improvements to make your case for a better rate.

If you’re in the situation of living in a fix ‘er up home while you’re trying to remodel it, the last thing you need is an extra expense. In many cases, you would be better off to rent an apartment while you are fixing the house up. In our own personal experience, a small apartment would have cost us less money than the extra insurance premiums we had to pay because standard companies would not insure the home. Trust us on this one: if you can’t afford to live elsewhere while you fix the home up, and it’s in bad enough shape that insurance companies won’t touch it, you need to get out of the home remodeling gambit.

Image by Kyle Kruchok

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Chinese Drywall Kills Home Insurance Policies http://www.homeownersinsurance.org/chinese-drywall-kills-home-insurance-policies/ http://www.homeownersinsurance.org/chinese-drywall-kills-home-insurance-policies/#comments Sun, 18 Oct 2009 16:57:24 +0000 http://www.homeownersinsurance.org/?p=80 iStock_000005131023XSmall

Back in March, officials at the Consumer Product Safety Commission began looking into the claim that certain drywall manufactured in China may be causing problems in homes. As a response, many homeowners insurance companies have actually canceled homeowners policies.

The drywall in question was imported during the peak of the housing boom in the United States. The drywall is especially common in southeastern states, including Mississippi, Florida and Louisiana. The drywall materials are thought to emit certain fumes that contain trace amounts of a chemical that can cause a rotten-egg odor when it gets warmer and more humid.

These fumes are causing other damage, as well. They are causing copper pipes to become corroded, causing problems with electronics equipment such as televisions, and even causing silverware to be blackened. Some homeowners who have the Chinese drywall installed believe it is making them ill, although the health risks aren’t entirely clear at this point.

Not all homeowners insurance companies are being so hasty, however. There is one company in Florida, for example, that has decided to renew some policies, despite the presence of Chinese drywall. The company is Citizens Property Insurance Corporation, and it is one of Florida’s state-backed insurers of last resort.

Politicians have gotten into the mix and are trying to advocate for Florida homeowners in the situation. Senator Bill Nelson of Florida, for example, has sent a letter to 11 different Florida insurers, asking them to clarify their policies on Chinese drywall. The letters also express the senator’s outrage at the policies being cancelled.

Repairs to homes with the drywall in question can be extremely costly. The entire interior of the building has to be gutted, and all the while the homeowner has to pay their house payment, as well as pay for somewhere to live on a temporary basis. Further complicating the matter is the fact that the insurance companies are considering the problem a preexisting condition, and unable to continue to insure the home. In some cases, the costs of repairs exceed the purchase price of the home.

How widely spread the problem is isn’t known. However, based on shipping records, one company estimates that as many as 50,000 of 2,000 square feet or more may be affected. Of that number, Florida ports actually received drywall enough to make 30,000 of those homes, meaning that the primary location for these homes is likely to be that state.

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